Bankruptcies On The Rise In Windsor
Some good news and bad news for Windsor out of a recent report by debt management experts.
Unsecured debt, which ranges from credit cards and payday loans to income taxes, in Windsor is about $46,367. And while that's below the provincial average according to Hoyes, Michalos and Associates, bankruptcies for the second quarter of this year are up 18% compared to the same period last year.
Group co-founder Doug Hoyes says unsecured debt of that level is a lot to handle.
"What makes it even worse is that in Windsor the average client that we deal with has a debt to income ratio of 170%, so that means if I earn a dollar a year, my debt at the moment is $1.70," says Hoyes.
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He believes it is due to the real estate market easing up.
Hoyes says there is a concerning trend taking place in Windsor.
"When you break it down between bankruptcies and proposals which are two different ways to deal with your debt, bankruptcies are way up about 18% but consumer proposals are down 13% so there has been an interesting shift in the Windsor area," says Hoyes.
Last year in Windsor, 896 people filed for bankruptcy or a consumer proposal.