30% of Bankruptcies in Ontario are Senior Citizens
A recent article by The Canadian Press/CBC, has pointed out a disturbing trend with today’s senior citizens in Ontario, many of whom are retiring earlier and living longer than previous generations of seniors.
Credit card debt currently represents the largest portion of debt for senior citizens, with payday loans becoming an increasing concern – according to a report from bankruptcy experts Hoyes, Michalos & Associates. Their report further indicates that seniors tend to have larger debts and short-term payday loans tend to have higher interest rates, making it very difficult for a senior citizen (whose income has likely been decreasing or at best, fixed), to get out of debt.
A significant factor in the rate of seniors declaring bankruptcy is the aging of the baby boomer generation (people born between 1945-1965) as they are now becoming official senior citizens. Other factors influencing this are the volume of seniors facing medical expenses, job losses, and the long-term financial impacts of divorce.
Read the full article here.