BC residents' growing debt

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The latest figures from the Office of the Superintendent of Bankruptcy show that more British Columbians filed for insolvency in the second quarter of 2019 than the same time last year.

According to the report, many people may still be ramping up borrowing against their homes to pay other debts.

The number of British Columbians who filed for insolvency in the second quarter of 2019 was up 11.1 per cent compared to the first quarter and up 5.2 per cent compared to the same quarter of last year. Lana Gilbertson, Licensed Insolvency Trustee with MNP Ltd. says that home equity lines of credit have emerged as one of the biggest contributors to the growth of household debt.

This is particularly noted in B.C., where real estate markets have surged over the last decade.

“There is a lot of uncertainty that comes with HELOCs, so this type of debt is particularly troublesome for those who don’t have firm financial footing. It can put people on the fast track to an endless cycle of debt, especially if the borrower accumulates more debt on the credit cards after paying them off with a HELOC,” said Gilbertson.

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