Credit card debt is growing among Canadian renters. What are the solutions?

For many Canadians, a common financial rule that your rent should not take up more than 30 per cent of your total monthly income has become an impossible guideline to follow. 

"I did some math here, 30 per cent of [my] pay is only $966," said Jennifer Smith, a renter in Toronto. But in reality, she says her monthly rent is over $3,200.

"[That's] not including the utilities and hydro and all that fun stuff," she told The Current's host Matt Galloway. 

Smith used her line of credit to cover the costs of her rental house, and says she often has to prioritize paying rent and feeding her children over paying off her credit card debt. 

"It's a scary situation to be in, but I'd rather miss a couple of payments and damage my credit, than not have a house, or fed kids," said Smith. 

Canadian renters who face the same predicament as Smith are on the rise, according to Bank of Canada governor Tiff Macklem in a speech to the Canadian Bankers Association this past September.

"Over the past year, the share of borrowers without a mortgage who carry a credit card balance of at least 90 per cent of their credit limit has continued to climb. And this share is now above typical historical levels. This is concerning," he said.

Smith says she's currently looking for a second job, but also hopes interest rates will go down. 

"It feels like a scam because I have to pay my regular interest payments per month, but then I have to pay additional money elsewhere just to attack the principal," said Smith.  

"And then in the meantime, I'm trying to cover ridiculous rents, cost of travelling in the city with traffic, daycare, food."  

Anne Arbour, director of partnerships and education at the not-for-profit Credit Counselling Society says they've been getting more calls lately from people asking for advice.

"Life is expensive right now, between groceries and cost of living in general," she said.

However, Arbour says there's still a taboo about admitting you have money challenges, with the assumption that "you should just know this stuff" if you're an adult.

"When people experience financial difficulty like debt … there are a lot of emotions wrapped up with [it]. There's shame, there's embarrassment, there's definitely a feeling of helplessness," she said.