Insolvencies in Canada now as high as during the financial crisis: Report
Personal insolvencies become more common when interest rates rise. In Canada, people are filing for insolvency at a higher rate than usual. According to The Toronto Star, experts are saying that we haven’t had this many instances since the financial crisis in 2008-09.
“If a household is living paycheque to paycheque and there’s a significant rise in interest rates, more of them will be pushed over the edge.” According to BDO, the number of Canadians living paycheque to paycheque is 50 percent.
He also noted, “People aren’t saving. They don’t have any savings. So when there’s a crisis, they put it on credit, and they end up getting into trouble.”
“They usually understand what’s caused the problems. But nobody plans to lose their job, or to get divorced.”
Bolduc also thinks that a higher number of self employed Canadians is a contributing factor in the growing amount of insolvencies. https://www.thepostmillennial.com/insol ... is-report/
This is cause for concern. But, it is to be expected in a country with such high consumer debt and few good paying jobs.