Why Canadians are suffering a bankruptcy spike

Interest rate hikes, housing costs, rising taxes and stagnating wages are all crucial. We need to address these problems

Why Canadians are suffering a bankruptcy spikeWhat can't happen won't happen. If incomes are stagnant while taxes, prices and interest rates rise, people will fail to pay their debts – as is the case for 120,000 Canadians every year. The long-term buildup of urban house prices had already made people financially vulnerable and consumer insolvencies in Canada increased by 9.2 per…

One-quarter of Canadians didn’t save a penny in 2018

There's no better time to tighten the fiscal purse strings than when interest rates are on the rise: BMO

One-quarter of Canadians didn’t save a penny in 2018Here’s a scary thought on the state of household finances in Canada. A new report released on Tuesday by BMO said one-quarter of Canadians didn’t save a penny in 2018 as Canadian household credit burdens keep creeping higher. “The current environment is putting some pressure on Canadians' finances, making it more difficult for them to…

Growing number of Canadians file for insolvency

But business insolvencies in 2018 were slightly lower than the previous year across Canada

Growing number of Canadians file for insolvencyAn alarming number of Canadians filed for insolvency in 2018 due to higher interest rates and mounting household debt. According to the Office of the Superintendent of Bankruptcy, 125,266 Canadians became legally insolvent in 2018 – a 2.5 per cent rise over the year before and the second highest number since 2011, said the Canadian…

Christmas overspending drops significantly for Canadian shoppers

Biggest drop was among 18-to-34-year-olds and women, who cut their overspending by almost $200: RBC

Christmas overspending drops significantly for Canadian shoppersOverspending dropped significantly among Canadian shoppers this past holiday season, to an average of $384. That’s down 28 per cent from the $530 average of 2017, the lowest level in eight years, according to the annual RBC Post-Holiday Spending & Saving Insights Poll, which was released on Wednesday. “We're all tempted to toss aside the…

CPP takes bigger bite from Canadians

But much of the justification for expanding the pension plan is debatable or downright wrong

CPP takes bigger bite from CanadiansBy Jason Clemens, Jake Fuss and Milagros Palacios The Fraser Institute Canadians likely noticed that their first paycheque of 2019 was slightly smaller than in 2018, even if they got a raise. The decline in after-tax income is because the first of several tax increases to finance an expanded Canada Pension Plan (CPP) took effect…

Alarm raised over Canadians’ levels of debt

MNP survey shows 46% of Canadians are $200 or less away from financial insolvency at month-end.

Alarm raised over Canadians’ levels of debtCanadians are more worried today about debt, interest rates and personal finances. And they should be. According to the latest MNP Consumer Debt Index conducted by Ipsos, 46 per cent of Canadians are $200 or less away from financial insolvency at month-end. That’s up from 40 per cent in September. And 31 per cent of…

The gig economy poses hurdles but offers big potential

An advantage of working on your own is that there’s no ceiling on how much money you can make

The gig economy poses hurdles but offers big potentialMoving into a new year is a good to time to plan ahead. But it’s become difficult and even frightening to do so in our work lives. Jobs are disappearing. People are being replaced by robots and other forms of automation. And it’s not just mechanical tasks, but also higher-level white-collar work like medical diagnosis…

Enjoy a glittering Christmas that stays within your budget

Whether tough times force your hand or you just want to start January without a credit card bill, you can still enjoy a glittering, happy holiday season

Enjoy a glittering Christmas that stays within your budgetWhat if I told you that ‘cutting corners’ can transform Christmas from a hectic, stressful money drain into a joyous, energizing experience? I understand if you are skeptical, but let me show you how it is possible to save money at the same time you enjoy a sumptuous, all the trimmings holiday season. The secret…

Increasing consumer debt and rising interest rates worrisome

Rising rates will lead to less consumer spending and impact Canada’s economy and business growth

Increasing consumer debt and rising interest rates worrisomeRising interest rates combined with near record high consumer debt levels are expected to increase the number of Canadian consumers who will be forced into insolvency over the next year, warns the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). The association says historically there has been about a two-year lag between the time interest…

A will gives you control of your affairs after your death

Sandy Lyons of Grant Thornton Ltd. explains that, when you die without a will, any prior verbal wishes to family and next of kin can be set aside

A will gives you control of your affairs after your deathSandy Lyons is a licensed insolvency trustee with Grant Thornton Ltd.’s consumer insolvency team in Calgary. Why do so many people not have a will? Lyons: It can be a matter of cost, not wanting to look at and plan for end of life, a lack of understanding and knowledge of what steps must be completed…

Lack of financial literacy skills hurting Canadians

MNP survey says without necessary skills, Canadians are easily lured into debt

Lack of financial literacy skills hurting CanadiansA lack of skills and education are contributing to surging consumer debt in Canada, says a new survey by MNP Ltd. Survey results, which were released on Tuesday, said 85 per cent of Canadians agree that financial literacy in Canada is lacking, and this lack of knowledge is contributing to Canada’s consumer debt problem (87…

Canadians worried about rising interest rates

MNP report says millennials have never experienced a time when credit wasn’t cheap and easily accessible

Canadians worried about rising interest ratesCanadians are increasingly fearful of interest rate hikes, according to the latest MNP Consumer Debt Index, which was released on Tuesday. MNP said the fear of a rate increase has intensified over the past few months. One-third of Canadians express concern that rising rates could move them towards bankruptcy. That’s a six-point increase since June.…

Alberta leads country with highest level of average debt

Calgary and Edmonton had the highest levels of debt of major Canadian cities

Alberta leads country with highest level of average debtThe average consumer debt continues to rise in Alberta with the highest level in the country, according to the latest Equifax Canada Q2 2018 National Consumer Credit Trends Report which was released on Wednesday. Calgary and Edmonton had the highest levels of debt of major Canadian cities and Alberta had the highest for all the…

Locnest helps put a roof over renters’ heads

Sébastien Barrillier of Locnest talks about how their model offers a simple solution to the security deposit problem

Locnest helps put a roof over renters’ headsSebastien Barrillier is president of Locnest. What is Locnest and how does it work? Barrillier: Locnest provides lease guarantee services to Canadian landlords and tenants. Our lease guarantee can replace security deposits in jurisdictions where they’re permitted and act as a guarantor or co-signer in jurisdictions where they’re not, providing landlords with a secure and…

Millennials face challenges dealing with inheritance

Shawnette Fraser of TD Canada Trust says its important to remember that there are emotions at play

Millennials face challenges dealing with inheritanceShawnette Fraser is district vice-president of Calgary North for TD Canada Trust. How big of a market is the millennial generation these days for Canadian financial institutions? Fraser: Millennials make up a large portion of our population, and as customer service-based business we need to be looking to how we can best support them in their…
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