After reading the major Léger survey on personal finances, is it surprising to see so many Quebecers finding themselves in dire straits?
No! It is enough to recall the alarming data that emerged from the recent Léger/Québecor survey on the state of Quebecers’ personal finances to realize the extent to which a large number of Quebecers struggle to make ends meet.
The deterioration of personal finances is terrible in Quebec.
Over the last 12 months, according to the Office of the Superintendent of Bankruptcy (OSB), some 35,803 Quebecers declared themselves insolvent by filing an insolvency file. Of these, 12,422 declared personal bankruptcy and 23,381 used consumer proposals as offers to settle their debts with their creditors.
35,803 insolvent
Some 35,803 Quebecers declared themselves insolvent over the last 12 months.
FRAIL FINANCIAL CAPACITY
To the question “Do you live paycheck to paycheck?” », there are 37% of Quebecers surveyed who answered YES. Therefore, more than 1 in 3 Quebecers rely on their pay to survive financially from one week to the next. And more specifically, know that 42% of 18-34 year olds find themselves in this precarious situation and 47% of 35 to 54 year olds. Worse still: 45% are parents of children.
In addition, you should know that 41% of Quebecers surveyed answered YES to the question “Are you afraid of running out of money to pay for your usual living expenses?” “. The people most afraid of running out of money are found among women (45%), people aged 18 to 54 (50%) and parents of children (51%).
41%
41% of respondents say they are afraid of lacking resources to pay their current expenses
And as for the question “Do you have $5,000 in savings to face an unforeseen event?” », how many respondents answered NO? Answer: 36% do not have that much savings in case of an unforeseen event. The most vulnerable are: 18-34 year olds (41%); 35-54 year olds (48%) and parents of children (46%).
It should therefore not be surprising to note, according to the Léger/Québecor survey, that 12% of Quebecers need a second job to make ends meet.
And when homeowners are asked about their ability to pay their mortgage payments, some 22% of them say they are “worried” about not being able to pay said payments. The percentage of “worried” rises to 33% among owners aged 35 to 54. Worse still, the survey reveals that 38% of homeowners are worried about not being able to renew their mortgage with mortgage payments adapted to their financial situation. No, but what stress!
NO MORE BANKRUPTIES WITH US
Of the 31,914 Canadians who filed for personal bankruptcy in the last 12 months, it is us, in Quebec, who come out on top with our 12,422 personal bankruptcies.
We represent 38.9% of all personal bankruptcies in Canada, far exceeding the weight of the Quebec population (22.1%) in the entire Canadian population.
Canadians in personal bankruptcy
Canadian citizens who have filed for personal bankruptcy in the last 12 months
| province | bankruptcies |
|---|---|
| Quebec | 12,422 |
| Ontario | 9,922 |
| Rest of Canada | 9,570 |
| Total | 31,914 |
Source: Office of the Superintendent of Bankruptcy
With the large number of our personal bankruptcies, we “surpass” Ontario with 2,500 more bankruptcies! The Office of the Superintendent of Bankruptcy has identified 9,922 personal bankruptcies in Ontario over the past 12 months. This is equivalent to 31% of all bankruptcies in Canada. This is significantly below the weight of the Ontario population (38.9%) in the country.
That said, to what do we attribute the deterioration in personal finances that has hit hard over the last 12 months?
According to trustee André Bolduc, president of the Canadian Association of Insolvency and Reorganization Professionals (CAIRP), several factors explain this deterioration: high mortgage renewal rates; the dizzying rise in rents; the increase in the cost of basic necessities as a result of inflationary pressures; the accumulation of large debts; the use of revolving credit, such as credit cards with their very high interest rates.
Times are hard !
