Seniors may have borrowed money to help their children and elderly parents.
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More seniors facing bankruptcy

Seniors have the highest level of debt among people in the province of Ontario who file for bankruptcy protection, according to bankruptcy trustee firm Hoyes Michalos & Associates Inc.

The number of seniors facing insolvency went up from eight per cent four years ago to 10 per cent in 2013-2014. They also had the highest level of debt—an average of $69,031 per person, including an average $33,355 in credit card debt.

Payday loans expensive

The most alarming trend is the increase in people over 60 years old who take out payday loans with very high fees, says the trustee. The loans provide money between paychecks, usually government pension cheques that arrive every two weeks. The fees can bet up to $21 for every $100 borrowed.

Debt incurred helping kids, elderly parents

Most insolvent seniors were thought to have accrued debt they incurred to help put their children through school and to help them get established in adulthood, or to help their own parents.

Insolvent seniors also owed high levels of taxes partly because they were used to having taxes withheld on paycheques they got from work, but no such taxes are withheld on government pension cheques. They were then surprised to see how much they owed when filing their taxes in April.

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