The number of Canadians who declared they were insolvent increased in the third quarter of the year and is expected to continue to rise.
According to the Office of the Superintendent of Bankruptcy, insolvencies in 2021 reached 21,649 cases in comparison to the 21,335 cases last year.
When excluding insolvencies filed by businesses, consumer insolvencies spiked to 21,113 compared to 20,707 a year ago.
The insolvency numbers are being reported at a time when Canadians are struggling to afford the growing price of groceries and gasoline due to inflation.
As reported by the Agri-Food Analytics Lab at Dalhousie University, some products have shot up in price by up to 25%.
The current rate of inflation is 4.4% but could reach 5% by the end of the year.
The 18-year-high in inflation levels has Canadians remarkably stressed out according to a recent poll.
The Angus Reid Forum surveyed 1,500 Canadians and found that increased cost of living was a source of financial stress for 67% of Canadians.
“We’re approaching the end of 2021, a year that many were looking to with optimism, but Canadians are feeling anxious about the highest inflation rate we’ve seen in a long time,” said PolicyMe CEO Andrew Ostro.
“Whether it’s keeping up with the rising food, fuel, or housing costs, people are stressed about the increased cost of living — and parents are feeling it the most.”