Higher interest rates pushing more Canadians to seek debt relief as business booms for insolvency trustees
The cases of insolvency in Canada are steadily increasing – even through traditionally slow months. More Canadians are applying for bankruptcy, mainly due to increased borrower interest rates. These insolvencies and higher interest rates are slowing growth in other sectors, including home buying and vehicle sales. Many have turned to payday loans but are digging themselves deeper into debt by borrowing more at these increased rates. Debt that would normally be manageable is compounded by extra interest and is becoming unmanageable for many that have borrowed money.
“Record debt burdens, rising borrowing costs and, in some cases, bigger payday loans are driving many Canadians to seek relief, according to several licensed insolvency trustees who spoke to Bloomberg.”