Ottawa, ON – Jasraj Hallan, Shadow Minister for National Revenue, released the following statement on the recent data released by the Office of the Superintendent of Bankruptcy:
“Canadian consumers are now running out of options to pay off their debt. That’s what the Office of the Superintendent of Bankruptcy reported this week after finding that the number of bankruptcies rose 10.3 per cent over the last year, part of a record high of 37,523 Canadians who filed for consumer insolvency in Q2 – the worst in over a decade.
“According to Scott Terrio, a manager of consumer insolvency at Hoyes, Michalos & Associates, a personal insolvency service firm, the ‘uptick can be attributed to historically high consumer credit-card and tax debt.’ That was confirmed by an Equifax report released last week that found one in four Canadians will only be able to make the minimum monthly payment on their credit card.
“Less than half of those under 55 expect to pay off their credit card balance in full, with 22 per cent struggling to pay down their debt. Canadian households are already the most indebted in the G7 relative to incomes, owing $1.80 for every dollar of disposable income they receive.
“It’s no surprise that debt is stacking up when Canadians are paying for the highest food inflation in the G7, according to the OECD. In June, grocery prices rose at almost double the inflation target – 3.9 per cent, the 17th consecutive month that food inflation outpaced overall inflation.
“No wonder 76 per cent report grocery costs as the biggest impact on their household finances, while United Way found 38 per cent of Canadians are experiencing food insecurity.
“Groceries aren’t the only item eating more of the budget as the cost of transportation rose 6.7 per cent and gasoline prices surged 20.5 per cent from the previous year. Higher prices have led to 42 per cent of those with children reporting the need to take on debt to pay for essential living expenses.
“While Carney tries to sell the illusion that life is getting more affordable, Canadians experience the reality of higher prices at the checkout and weaker purchasing power under the Liberals.
“Conservatives will restore the promise of an affordable life by lowering the cost of government to lower the cost of living. By getting out of the way, unleashing our resources and creating real economic growth, we will deliver stronger take-home pay that buys affordable food and homes again.”