March 17, 2015
The tendency towards bankruptcies and consumer proposals in the two largest provinces in the country is diametrically opposed. In three years, the number of insolvency cases increased by 15% in Quebec, while it decreased by 13% in Ontario!
In 2014, the number of files was higher in Quebec than in Ontario while the population is 40% lower in Quebec.
Why? It is not a question of higher debt for Quebecers compared to our neighbours. In fact, Ontarians have a higher debt ratio than Quebecers.
What is the cause, then?
Jobs! The loss of employment is the main factor behind these numbers. While the unemployment rate has been steadily declining in Ontario for the past few years, the number of good full-time jobs in Quebec has been decreasing slowly but surely.
This has a direct effect on family finances. In fact, when family income plummets following the loss of a job or a drop in income, a "bearable" debt situation can rapidly transform itself in a state of over-indebtedness.
Unfortunately, it is difficult to predict a layoff. The key therefore resides in the control of the debt ratio in order to reduce it to the lowest level possible, and in the creation of an emergency fund to compensate for temporary income loss.
For all questions or comments, do not hesitate to contact our experts at 1-800-465-3809.