Faced with the galloping rise in prices, Quebecers find themselves caught in the throat. However, there are solutions to get through this crisis while minimizing the long-term consequences.
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“Statistics Canada has confirmed an 8.1% increase in the consumer price index for the month of June,” explained Sophie Desautels, licensed insolvency trustee at Raymond Chabot, on the air for LCN. This means that for the purchase of the same basket between the months of May and June, it will be necessary to expect a price 8.1% higher.
If prices have increased, wages are stagnating. “Wages increased by around 4% last year, which means that the purchasing power of households has decreased considerably,” she commented.
“When you have an average salary, you’ll start to dip into savings,” whether it’s on a savings account strictly speaking, or by disbursing your RRSPs, for example. This last strategy is nevertheless risky, since it will probably incur costs on the next tax declaration.
Driven by inflation, “those with lower incomes or who are already in deficit will have to use the credit”, which might become difficult to assume, especially when we know that “next week, the minimum payment on the credit cards will increase by 3 to 3.5%.”
This increase in minimum credit card payment is not the last, and there will be several others until 2025, until a minimum repayment of 5% is reached.
“As soon as you feel the price in your throat, you shouldn’t wait and consult a licensed insolvency trustee,” advised the expert. This will result in a comprehensive analysis of their spending, sifting through their bank statements, in order to change bad spending habits.
It is also possible to sell useless goods, for example by going through resale platforms on the internet, such as the Kijiji site or the Facebook Marketplace.
Find the full interview with Sophie Desautels in the video above.
