His late mother in debt, he calls for change

Estrien René Lapierre will never forget his Christmas 2022. In his mother’s small bungalow, the whole family is cold. “It was as warm as possible to survive,” remembers his son. Over-indebted and at the end of her rope, Thérèse Roy is no longer able to repay her creditors.

His mother having now died, his son speaks up to deplore the ease with which she had access to credit.

In his eyes, Quebec is missing an important net in terms of debt. I appeal to financial institutions and I also appeal to the government to regulate lines of credit and mortgages for the elderly.

The story of Thérèse Roy shows that it can be easy – and above all quick – to get into debt. It all started in 2019. At the time, the seamstress lived in an apartment, with a modest salary. After meeting her partner, she bought a house with him. The man puts down a large down payment, which allows them to get a reasonable monthly mortgage.

For René Lapierre, it is the purchase of the house which opens wide, for Thérèse Roy, the debt trap.

She had credit cards, but without the house, [les institutions financières] gave him credit according to his means. There, after that, since there was the house, they opened the wallethe laments.

My mother was just a seamstress, she was not a specialist, a professional [du monde] financial. It was based on a financial professional and he did not do his job.

At the time of her death, four years after purchasing her house, Thérèse Roy and her spouse accumulated $154,000 in debt, the majority of which came from her mortgage line of credit. According to figures provided by Mr. Lapierre, she also has $20,000 in personal debt. Their overall family income was about $3,100 per month, but after all the payments due, there was $100 per month left to buy food and then pay for gas for travel.he illustrates. My mother was on the verge of bankruptcy.

A widespread problem

Thérèse Roy’s story is not that of all seniors. However, there is a trend that is becoming more widespread: the level of debt among older people is on the rise.

According to data collected as part of its Survey on Financial Security published in 2019, Statistics Canada attributed two-thirds of the growth in debt among seniors to an increase in mortgage debt. Because yes, even seniors have mortgage debt.

Life paths are more varied than before. We are no longer in the mode of “I work, I pay my mortgage and I retire without debt.” But there’s still a lot of that mentality. Often, seniors who have debt therefore have the impression that they are alone.points out the coordinator of ACEF-Estrie, Sylvie Bonin.

And yet, she adds that the percentage of seniors who have debt – whether credit card debt, car debt or mortgages that are not paid – has been increasing for 20 years.

This reality confronts another: if talking about money is generally taboo, it is even more so among seniors.

Basically, debt is a bit taboo. And among older people, it’s even more taboo.

She suggests that seniors who have money problems open a dialogue with their children. For those who would be too embarrassed to do so, it is possible to turn to organizations like Solutions Budget Plus. Debt is not necessarily a problem, but it can become oneshe summarizes, emphasizing the importance of not waiting too long before consulting.

Remortgaging your house can sometimes even be an effective solution, depending on the context. A mortgage line of credit is the least expensive method of credit. […] It might be a good idea to use this mode. It’s up to us to think about why we want to go into debt.she warns.

A complaint that remains unappealed

René Lapierre suspected that his mother had money problems. It was only when she died last January that he realized the extent of the problem.

My mother was secretive. She hid the whole situation. I didn’t have any figures. She didn’t tell me any numbershe said.

Settling the estate was a laborious process. He quickly had to sell the house and the motor vehicle. Her partner had to find a new place to live. Even today, it is difficult to explain how a financial institution was able to lend him so much money, given his level of debt and his salary. He also filed an official complaint with the financial institution, which was rejected.

Contacted by -, a spokesperson responded in writing: [Notre institution financière] can give advice and tools to its members to limit their debt, but if the debt ratios are acceptable taking into account several factors, as in the case of Mr. and Mrs. Roy, then the decision to take out loans or consolidation of various debts contracted with merchants or other financial institutions belongs to the members.

Mr. Lapierre remains bitter about the situation. He asks the government to tighten the rules to better regulate the acceptable debt ratio for seniors. I don’t do it for the money. It’s symboliche said. His wish is to prevent too many seniors and their families from finding themselves in the same situation. Instead of leaning in and experiencing the loss, we were forced to think about my mother’s loss with the financial side.