Way more people are filing for bankruptcy in Toronto as cost of living soars
It's hard to afford anything these days as the price of everything continues to get jacked up, with the average Canadian struggling to pay for basic necessities such as food, transportation, and all-expensive housing in places like Toronto.
While wages have certainly not risen to match inflation, new numbers suggest that a lot of people may be worse off than we think as we slowly adjust to the new normal and everything that means.
For many who were unable to work during lockdowns, government support through programs like CERB meant a big paycut, but one they had no choice but to take. For others, being on these supports was actually a more financially secure place for them than before, and bouncing back has proven difficult.
Not to mention minimum wage will be stagnant another four years while the cost of living goes through the roof in Ontario— Tammy 💪🇨🇦🇺🇦💪 (@Tammyocanada) August 9, 2022
The latest stats from the Office of the Superintendent of Bankruptcy Canada, as reported by the Star this week, show that while personal bankruptcies were down from normal levels amid the peak of the health crisis, they're spiking back up again.
Across Canada, 11 per cent more people filed for bankruptcy in the second quarter of 2022 than in the second quarter of 2021 — and in Ontario and certain cities specifically, the problem is worse than elsewhere in the country.
When comparing the same two time periods in Ontario, personal bankruptcies are up 16.5 per cent; 15 per cent in just Toronto, and a whopping 26 per cent in Hamilton.
So many things. First of all, people across this country are literally screaming out at the cost of living. Rent is through the roof in Vancouver and Toronto, and home ownership is a pipe dream for most.— Kat Arnett (@katarnett) August 3, 2022
And, while these are figures that are pretty on par with pre-COVID levels, they were on the rise before lockdowns and are expected to continue to jump even moreso with unprecedented inflation and interest rate increases.
People who were able to defer debt payments or haggle for lower rent from their landlords over the last few years are now not only out of those options, but are faced with even higher payments and prices for these things and all else than before, and apparently not coping well.
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