As that classic saying goes, there are only two things in life that are certain: death and taxes.
Well, now you can add debt to that list, too, because it seems that Vancouverites are having a harder and harder time on paying back their debts.
COSTS, COSTS, AND MORE COSTS
Money.ca is a financial news and comparison site that offers a wide range of articles related to finances. In a recent report on Canada’s debt crisis, Contributing Research Analyst Nicholas Rizzo details some rather alarming findings.
Unsurprisingly, he discusses that “over the past year, average debt levels have grown modestly.” This is due to rising living costs and a heavier reliance on credit in order to pay for the costly Canadian life. The most notable part of this report are his notes on “delinquency rates.”
Debt delinquency refers to the rate that one misses their debt payments. Basically, if you’ve missed a debt payment– no matter if it’s a loan, credit, or something in the same vein– then you’ve just added to your delinquency rate. The higher the debt delinquency, the bigger indicator that you’re in “financial distress.”
BILLS AND CREDIT
Nationwide, Canadians’ debt delinquency has increased dramatically. Rizzo notes this as a signal that Canadians are becoming further unable to “manage their financial obligations.”
In section 4, “Urban centres under pressure”, Vancouver gets highlighted as having delinquency rates increase by a staggering 19.00%. This is only second to Toronto, whose rates skyrocketed to the shocking number of 24.16%.
The burden of housing costs, groceries, and even gas, Vancouverites are having major trouble keeping up with their debt payments. And once you get into that hole, it’s extremely difficult to dig yourself out of it. The report states that this points to “the growing difficulty of managing debt in an environment of persistent affordability challenges.”
Although prices for rent and gas are seemingly taking a decline, it is hard to say what the future holds for Canada’s most expensive city.
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