B.C. woman’s struggle with debt highlights cost of living challenges

With many struggling to make ends meet right now, we’re getting a snapshot of just how dire things are for some people.

CityNews Vancouver spoke to one woman from Richmond, B.C., who does not want to be identified, to find out how she’s coping amid a cost-of-living crisis affecting millions of Canadians from coast to coast.

She’s 30 years old, lives on her own and works three jobs but is more than $10,000 in debt. She says she’s not able to save or make a dent in that debt while she tries to get by.

She tells CityNews she’s frustrated, overwhelmed and really stressed out as she moves money around every month to ensure all of her bills are paid.

“Buying food, for example, I just racked up credit card debt. It was horrible because I just couldn’t afford to pay for everything that I needed to pay for.”

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During the pandemic, she wasn’t going into work as much, but she’s resumed commuting.

“Gas prices are so high and now I’m having to drive into work again and bussing isn’t an option for me because it isn’t reliable enough for me to get from one job to the next as quickly as I need to. Rent is so incredibly high. Everything just costs so much money. I just never know if I’m going to be able to actually have money.”

She says, for the most part, she is working seven days a week and admits she’s exhausted. “It’s a lot and as one person, it’s a huge struggle. I’m just trying to get by and pay down my debt.”

Despite her situation, she says she loves living in the Lower Mainland and tries to keep a positive outlook.

“You can’t do anything about it, but I have to keep reminding myself, it’s not the end of the world and I’m doing everything I can do at this point. It’s also not my fault. I have nothing to do with how much rent costs or how much inflation is or gas costs. I just need to do everything I can do to stay afloat. It can only get better, hopefully.”

She would like to see some changes to help people like her.

“Like anybody I would love to see prices drop. I don’t fully understand why gas prices have to be so insanely high. Why bread prices have to be so insanely high. It just feels like a lot of it is just for people who have money to make more money.”

What she’s going through is echoed in a new survey from the National Payroll Institute which finds the number of working Canadians spending more than their net pay is at the highest level they’ve ever seen.

The organization also finds most people are also spending all or more than their net pay, up to 91 per cent from 82 per cent a decade ago.

“The real concern here is debt levels, so right now four-out-of-10 Canadians are carrying credit card debt for essentials, like food, so the combination of those things is really changed significantly compared to the last two years,” explains the institute’s president, Peter Tzanetakis.

“The number one concern is the cost of living and interest rates. If you’re carrying debt, especially credit card debt, which is high interest, is having a major, major impact as you go month from month by carrying that debt and that could really put a dent in your finances.”

He says if you need professional help to get your bottom line in order, then do it, warning against ignoring the problem for too long.

“You have to really do some budgeting and you really have to think about what is top of mind for you, from a financial perspective but doing nothing isn’t going to help. You have to look at it and really be disciplined in your finances in order to make ends meet.”