Nearly two in five Canadians say that their current incomes are not enough to cover their bills and debt payments
As much as 52% of Canadians said that they are just $200 away or less from not being able to pay their bills by the end of the month, according to a new report by MNP Ltd.
“As interest rates move upwards and the cost of living remains a challenge for households, the proportion of Canadians who report being insolvent has reached an all-time high,” MNP said in the latest edition of its Consumer Debt Index.
This record-breaking level during the second quarter includes 35% who said that their current incomes are not enough to cover their bills and debt payments.
On the whole, Canadians expressed more negative attitudes toward their personal finances and debt, with “the escalating burden of household bills and food prices [intensifying] Canadians’ financial anxiety — and is further compounded by increased debt-servicing costs, particularly for those who are deeply indebted,” said Grant Bazian, president of MNP.
A majority of respondents (52%) also said that they regret the amount of debt they’ve taken on in life, while 48% expressed concern towards their current debt levels. Both were similarly record-high levels for these metrics, MNP said.
Nearly seven in 10 Canadians (69%) said that they are worried about their ability to service their debts, with 63% admitting that they’ll end up in financial trouble if interest rates climb further.
“Households are facing a range of financial pressures with the dramatic increase in the cost of living,” Bazian said. “Without much wiggle room in household budgets, many are at risk of falling into arrears.”
