Tag: Canada middle class

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CANADA MIDDLE CLASS SIZE: DO YOU FALL INTO THE TRUDEAU MIDDLE CLASS DEFINITION?

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canada middle class size

Canada middle class size: Introduction

Most Canadians think of themselves as being “middle class”; however that seems to be changing. According to an Ekos-Canadian Press poll, Canadians who self-identify as working class poor are on the rise. The increase seems to be at the expense of the Canada middle class size. This same poll suggests people are feeling more pessimistic about their own futures not just over the next year, but over the next five.

Canada middle class size: The old Canada middle class definition

We used to define middle class as the median in household net worth, but this too, has changed. Middle class has now morphed into more of a state of mind than a demographic bracket. We now tend to think of middle class as a lifestyle and a value system – hence the expression “middle class values”.

This belief in middle class being a lifestyle is contributing to an increasing debt load for many Canadians. According to a recent CIBC poll:

  • Many Canadians seems uninterested in prioritizing needs over wants
  • Only 50% of those surveyed were willing to cut spending on non-essential items to keep up with bills

Canada middle class size: Canadian average household debt

The sad truth is that regardless of whether you’re middle class as a demographic bracket or a lifestyle, Canadians are now carrying more debt than those of any other G7 nation. Many are spending as much or more than they earn and as a result spreading things so thin that they’re living paycheque to paycheque.

In a recent survey by Canadian Payroll Association, almost 48% of respondents admitted they wouldn’t be able to make ends meet if their paycheques were late even by a week.

Canada middle class size: Is your debt pushing you away from the middle class

Are you getting deeper in debt trying to maintain your middle class lifestyle? If so, you need professional help before your house of cards comes tumbling down. I strongly recommend that you contact a professional trustee as soon as possible. Ira Smith Trustee & Receiver Inc. can help, no matter how dire your situation seems. With immediate action and the right plan, we can solve your financial problems Starting Over, Starting Now. Give us a call today.

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Brandon Blog Post

# VIDEO: CANADIAN FAMILY DEBT: WE SEEM TO ADORE IT! #

Canadian family debt

Last week we published our blog CANADIAN HOUSEHOLD DEBT: WE SEEM TO LOVE IT! The week before that, our blog was THE NEW ECONOMIC ATTACK IS ON CANADA MIDDLE CLASS.
Those blogs garnered so much interest, we thought we would make a short video on the whole issue of Canadian family debt, containing some additional facts. Please click on the video below to watch it.

https://www.youtube.com/watch?v=y6sqAULV53c

Some interesting yet troubling facts

As seen in this video, some of the more interesting facts are, notwithstanding that the ratio of Canadian family debt to disposable income has hit a record high of 165%:

  • the average after tax family income in 1990 was $45,000 and in 2015 it is $73,000 which means that incomes have not gone up more than the rate of inflation
  • in 1990, the asset to debt ratio of the average Canadian family was 17.8, but in 2015, the asset to debt ratio is only 18.2
  • Therefore, for every $1 in Canadian family debt, in 1990, the average family had $17.8 of assets, which has only negligibly increased to $18.2 of assets for every $1 of debt in 2015

What is a person to do?

Are you walking a financial tightrope? If interest rates rise will you be able to afford your Canadian family debt? Better yet, would you know how to pay off debt?

Don’t wait for disaster to strike! The time for professional help is NOW. Contact Ira Smith Trustee & Receiver Inc. We’re experts in debt and debt management. We approach every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now we can give you financial peace of mind.

Canadian family debt, debt, Trustee, starting over starting now, debt management, family debt, Canadian household debt, Canada middle class

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Brandon Blog Post

THE NEW ECONOMIC ATTACK IS ON CANADA MIDDLE CLASS

young Canada’s middle class, Canada’s middle class, Statistics Canada, renter households, living paycheque to paycheque, trustee, debt, starting over starting now, Vaughan, “middle class”, middle class, definition of Canada middle class

Canada middle class – what is your definition?

My definition of Canada middle class is the group under a new economic attack because of housing costs. Affordable rental housing for Canadians has become an oxymoron in term. In fact, rental housing has enslaved young Canada’s middle class, forcing them to spend so much of their incomes on a place to live, that many are in danger of becoming homeless.

What Statistics Canada says

According to the experts, spending more than 30% on housing is unaffordable. This doesn’t take into account food, clothing, transportation or any of the other necessities of life. According to data from Statistics Canada:

  • There are more than 4 million renters in Canada
  • Over 40% of all renter households are spending in excess of 30% of their gross income on rent
  • 20% of all renter households are spending in excess of 50% of their gross income on rent which housing advocates say puts them at high risk of becoming homeless
  • In Vancouver and Toronto, 45% of renter households are spending more than 30% of their income on rent

Not just a big city problem for Canada middle class

The lack of affordable rental housing is not a problem exclusive to the big cities. Renters in small cities across Canada are also struggling financially. In the Toronto area, average rents are higher in the suburban communities of Milton and Vaughan than in the City of Toronto. And, Mississauga ranked among the worst cities in the country when it comes to a shortage of affordable rental housing.

Traditionally people rented apartments to save money and eventually buy a house. With young Canada middle class enslaved by rental prices, buying a house isn’t even on their radar; keeping a rental roof over their heads is a primary concern.

What to do if you have debt problems

Are you living paycheque to paycheque because you’re enslaved by rental prices? We can’t help you find a cheaper place to live, but we can help you deal with what may seem to be insurmountable debt. Call Ira Smith Trustee & Receiver Inc. today. We’ll review your file and come up with a plan so that you can be Starting Over, Starting Now.

Call a Trustee Now!