Debt has become a survival tool: survey
Posted May 4, 2015 8:39 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – More Canadians are turning to debt as a survival tool, according to a new survey commissioned by an Ontario-based accounting firm.
Students and single parents the other demographics carrying heavy debt loads.
“While the rate of personal insolvencies has fallen in recent years, certain at-risk groups continue to struggle to stay out of debt,” said Douglas Hoyes with Hoyes, Michalos & Associates Inc.
Those 60 and over have the most debt of all age groups, carrying just under $70,000 worth of it.
Actual credit card debt is down, but advances like payday loans and other short-term lending are up.
“Struggling Canadians are susceptible to poor credit choices and these choices are increasing their risk of filing bankruptcy” says Ted Michalos, with the firm.
“While credit card debt declined sharply, payday loans and ‘fast cash’ loans are an increasing problem, particularly for seniors; and student loan repayment remains an issue, especially for women.”
The average person is borrowing just under $2,800 a month, which is 113 per cent of the average monthly income.
When it comes to single parents, three out four of single parents who become insolvent are women. The survey finds single moms usually carry less credit card debt than the average person, but are more likely to have debt in collections.
For students, the average woman carrying a student loan owed $14,748; that’s 19 per cent more than the average man’s loan.
Women are also more likely to have unstable income, making student loan repayment more difficult.
