On the Brink: rent is eating up half her pay, payday loans made it worse

This is the latest instalment of a Global News series called ‘On the Brink,’ which profiles people who are struggling with the rising cost of living. In this story, an Ontario woman speaks about the struggle to deal with the cost of living on a single income.

With half of her paycheque going to rent, Debbie Smith says she is feeling pressure just to get by.

Smith, 56, makes approximately $45,000 a year working an office job in London, Ont.

She says with that type of salary today, her two pay stubs a month are already spoken for: one goes to rent, and the other covers everything else.

“If I needed a car repair, and if it wasn’t for my family to help me, I think I’d be taking the bus because I just couldn’t afford the repairs,” Smith said.

“If I didn’t have a vehicle, I couldn’t get to work to pay the rent.”

Since speaking to Global News, Smith later said her car has since broken down and needs to be replaced. She also says she needs dental work that will cost $2,000.

Smith pays approximately $1,450 a month for a two-bedroom apartment she lives in with her daughter, who just finished post-secondary school.

Since moving in five years ago, Smith says their rent has increased by $500, and she does not know what she will do if the rent continues to rise.

A report from Statistics Canada found that in the spring of 2024, nearly four in 10 Canadians reported being very concerned about their ability to afford housing or rent because of rising housing prices, compared with three in 10 in the spring of 2022.

To help get by, Smith said she is a member of several online groups that offer free food to help with grocery costs.

She has also cut back on things like cable and the internet, but even then, it’s still hard.

Smith said she loves having her grandchildren over for sleepovers on weekends, but given her situation, she makes sure to schedule that family time for when her paycheque lands to help cover the cost of items such as juice boxes and snacks “that we normally wouldn’t stock at home,” she said.

Last spring, 45 per cent of Canadians reported that rising prices impacted their ability to meet day-to-day expenses, compared to 33 per cent two years earlier, the Statistics Canada report found.

The report found that those who rented were more likely to face greater financial difficulty than those living in a home owned by someone in their household.

Smith said she used to own a home but had to sell it after her husband died 10 years ago because she could not keep up with the maintenance.

“I couldn’t do that by myself, so I went way behind in (payments), and it got to a point where I couldn’t pay the house insurance,” she said.

“I sold the house and made enough to buy Tim Hortons coffee. The house sale didn’t benefit me at all, but I knew I had to get out because I couldn’t afford it.”

Smith added she is also trying to financially recover from bankruptcy after falling into the dangerous cycle of taking out payday loans a few years back.

“When my granddaughter was first born, I wanted to buy things for her, and I just couldn’t, so one loan would lead to another, and then it would be toys as she got bigger,” Smith said.

“Those places would help me. It was great at the time until I owed five of those places, and I just couldn’t do it.”

When it comes to payday loans, Smith said she has learned her lesson and is working to pay off her debts.

However, with her current financial situation, she said she is not sure what the future looks like for retirement.

“I’ve been trying to work with a company to help me with retirement, but in the big picture, I’m just having trouble saving for my grandchildren,” she said.

“I like working, and I’m healthy, so I am just going to take it one day at a time and not worry. … I am just going to do it day by day.”

The third story in Global News’ relaunched On the Brink series is set to publish next Saturday.

If you have a story about the cost of living you would like to tell, please email us below.