Earlier this year, Ann’s trustee filed a consumer proposal on her behalf.
Both 24 years old at the time, they carried about $35,000 in debt between them, mostly tied to student loans.
“We rushed into getting a house because we just thought it would be the right thing to do,” Joshua says. But the couple was blindsided by maintenance costs.
Economists at TD Bank Group believe two more rate hikes are likely next year.
That will cause rates on everything from lines of credit to car loans to mortgages to tick up.
“If ever we were poised to hit that right on the head, it’s now.” For some Canadians who struggle with debt, the problem can be traced back to real estate.
In a survey TD released in September, 56 per cent of respondents from across Canada were willing to exceed their budget by up to ,000 to purchase a home.
Last spring, the Financial Consumer Agency of Canada warned that the increased use of HELOCs “may lead Canadians to use their homes as ATMs, making it easier for them to borrow more than they can afford.” Insolvencies, though, are rare.
As of the end of July, there were nearly 123,000 consumer proposals and personal bankruptcies filed by Canadians this year, a decline of 1.2 per cent from the same period last year.
“It almost felt wrong to be renting and having a kid.” (Joshua’s mom pressured them to buy, too.) In one weekend, they viewed 16 houses. Their furnace needed repairs, and they later had to replace the water heater, which set them back hundreds of dollars.
After expenses, the pair has virtually no cash to put toward their debt.
But lately Terrio has noticed a change in his business.