2023-12-15 01:41:33
Inflation and rising interest rates: the economic context is becoming increasingly difficult for Quebec households to absorb. For financial institutions and trustees, the data is unequivocal.
Senior advisor in wealth management for National Bank Financial, Bryan Beaulieu notes that savings are declining, while debt rates are increasing.
“People are more in debt, especially those aged 30 to 39. Credit card balances and late credit card payments have increased. This is a time when the amounts people are paying in interest are much higher than in recent years.”
Among retirees, Bryan Beaulieu notes that the amounts withdrawn each month are increasing, to keep up with the cost of living which is also increasing.
The observation is similar to the trustee Lemieux Nolet. Rising interest rates, combined with inflation, bring more customers. “We have approximately 20 to 25% more files than at this time last year,” detailed Samuel Gignac, CPA and associate trustee for the firm.
“Bankruptcy, consumer proposals, these are solutions of last resort. But we feel that there is more widespread precariousness than last year. Moreover, since last year, we have noticed that our volumes are constantly increasing as well. So it’s an increase, but it’s not a one-off increase, it’s really a trend.”
All things considered, he notes more bankruptcy cases among those aged 60 and over, while some have retired with debts.
The president of the Mauricie Seniors Consultation Table also notes the precariousness of elderly people, even if many do not want to let it show.
“They are very proud, so they don’t want to say: I don’t earn much, I got things together, I sold my house, that’s all I have to live on. We hear about things like that. This is the current lot of misery for the elderly,” said Claude Trudel.
Despite all these financial concerns, there are still elements that allow us to maintain hope for 2024 according to experts: inflation is slowing and interest rates should fall again soon.
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