Back in April, the Huffington Post reported on bankruptcy in Canada and noted that, according to the Office of the Superintendent of Bankruptcy (OSB), the number of consumer insolvencies (bankruptcies and consumer proposals) in Canada jumped by almost 10% over the past year. Have things changed since April? Is the Canadian consumer debt situation getting any better?
According to CBC News, it doesn’t seem so. Alberta, the province which seems to be the hardest hit, is dealing with a continued rise as insolvency is up 35%. Oil prices have contributed to this increase, as did the Fort McMurray fires. Additionally, the articles notes, “stagnant oil prices and a drop in activity due to the fire also contributed to a 0.6 per cent drop in the province’s GDP in May, the biggest drop since 2009.” Overall things are tough for many individuals.
That being said, economists are hoping that rebuilding Fort Mac will help to give the economy a much needed boost. Read more about this here: http://www.cbc.ca/news/canada/calgary/insolvency-alberta-gdp-growth-1.3701162.
Comparing personal insolvencies in May 2015 to May 2016, Ontario saw an increase of just over 6% – compared to the struggling oil provinces, that isn’t so bad.
If you are one of the many Canadians who’ve joined this club, you know you are not alone. You’re probably aware that bankruptcy and consumer proposals can impact your credit report and credit rating. You should also be aware that you need to start rebuilding your credit as soon as possible.
Want to chat about some options to get started rebuilding your credit, even while bankruptcy in Canada is on the rise?
Call Prudent Financial today – we help even those with badly bruised credit: 1-888-852-7647.