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This article is part of an ongoing series titled ‘On the Brink,’ which highlights individuals facing challenges due to the increasing cost of living. Here, we explore an Ontario woman’s experience managing on a single income amidst these financial pressures.
Debbie Smith, aged 56, finds herself grappling with the escalating costs of living, with a significant portion of her income allocated to housing expenses. Living in London, Ontario, Smith earns approximately $45,000 annually through her office position.
With her income, Smith reveals that her two monthly paychecks are almost entirely consumed—one is dedicated to her rent, while the other is reserved for her living expenses. “If I needed a car repair, and it wasn’t for my family’s support, I think I’d be reliant on public transport instead,” she explained. “Without a vehicle, getting to work to pay the rent would be nearly impossible.”
After speaking with Global News, Smith revealed her car has broken down and will require a costly replacement. Additionally, she faces dental expenses that amount to $2,000.
Concerns About Housing Affordability
Smith pays roughly $1,450 for a two-bedroom apartment that she shares with her daughter, who recently graduated from college. Since moving in five years prior, their rent has seen a $500 increase, leaving Smith uncertain about future accommodation costs.
According to a recent report from Statistics Canada, nearly 40% of Canadians expressed serious concerns regarding their housing affordability as of spring 2024. This reflects a notable increase from just 30% in the same period two years earlier.
To mitigate her financial struggles, Smith participates in various online communities that offer free groceries. Furthermore, she has opted to reduce expenses by eliminating subscriptions like cable and minimizing internet usage, yet living within her means remains a daily challenge.
While Smith cherishes the opportunity to host her grandchildren for weekend sleepovers, she carefully plans these visits around her pay periods to afford extra treats like juice boxes and snacks that she typically wouldn’t buy.
Statistics Canada reported that last spring, 45% of Canadians noted that soaring prices were hindering their ability to cover day-to-day expenses—a sharp rise from 33% two years prior. Renters, in particular, indicated facing greater financial pressures than those living in owned homes.
Smith recounted her past experience as a homeowner, revealing that she was compelled to sell her house after the death of her husband a decade ago, as she struggled to maintain it alone. “I couldn’t manage the upkeep, and I fell behind on payments until I could no longer afford house insurance,” she stated. “The sale of the house didn’t yield any financial benefit; it merely allowed me to buy a cup of coffee.”
Escaping the Cycle of Debt
In addition to her housing burdens, Smith is currently recovering from a recent bankruptcy, primarily caused by a harmful cycle of payday loans. In an effort to provide for her granddaughter after her birth, Smith found herself trapped in a worsening financial spiral: “One loan led to another, and I ended up with debts for toys and essentials as she grew,” she shared.
Smith now recognizes the pitfalls of payday loans and is working diligently to settle her financial obligations. Nonetheless, given her current circumstances, she remains uncertain about her retirement prospects.
“I have been exploring options to assist me with retirement savings, but it’s a challenge just to save for my grandchildren’s future,” she explained. “I enjoy working, and I’m in good health, so I plan to take it one day at a time without worrying too much.”
The next chapter in Global News’ ‘On the Brink’ series is scheduled to be released next Saturday.
If you have a personal story related to the cost of living and wish to share, we invite you to reach out to us.
Source
globalnews.ca