A new report shows Quebec seniors are less indebted than those in the rest of Canada.
Other than mortgages, the average Quebec senior owes credit cards and credit lines totaling more than 12 thousand dollars - almost $4,000 less than in the rest of Canada.
Trouble is, that same report finds seniors are increasingly falling behind on their bills.
If you compare the last 3 months of 2018 to the previous year, seven per cent more Canadian seniors were 90 days late on their bill payments.
Equifax blames slowly rising interest rates.
“Given that a lot of people have these home equity lines and lines of credit in general, which have variable rates over time, it just sort of starts to add up,” explained Bill Johnston.
It's adding up to problems for a lot of Canadians. Many home owners can't afford the higher rate when their mortgage comes up for renewal- just one reason Equifax has seen a 15 per cent increase in personal bankruptcies compared with the same period last year.
“Right now what we're seeing is that a lot of people that are retiring do not have sufficient income to keep up the lifestyle that they had, so right now they're either using credit to supplement their income or they're re-mortgaging their houses in order to make ends meet at the end of the month,” said insolvency trustee Chantal Gingras.
The positive news for borrowers: for now- the bank of Canada has changed its tone interest rate hikes and holding the prime rate at 1.75 per cent.
But financial planners warn that rates won't stay this low forever. They say take the time to get your financial house in order.
“Don't use credit to supplement your income, live within your means, and save for retirement,” Gingras advised.
Some have already been heeding those words.
"I have credit but I don't put anything on my credit cards or anything like that," said one senior at the Teapot 50+ Centre in Lachine.
"I pay with cash."
