A new consumer debt survey has found that one-third of Canadians can’t keep up with their monthly bills.
The quarterly MNP consumer debt index survey says the number of Canadians who can’t cover fixed monthly expenses, including debt repayments, climbed eight points since September, according to a Canadian Press article featured in Canadian Business.
The survey also found that disposable income is declining for Canadians who are having trouble making ends meet. They had an average of $631 left after paying bills and contributing to debt repayment, a decline of 15% from the previous quarter.
Adding to the financial stress is the fact that the Bank of Canada raised its benchmark interest rate twice last year and is expected to continue the policy this year. Four out of ten survey respondents worry that if rates rise much more they’ll be in financial trouble. A full third said rising rates could put them in danger of bankruptcy.
Most respondents said they plan to be more careful about spending, while almost half expect to take on more debt in 2018 just to cover expenses.
Ipsos conducted the survey, polling 2,001 Canadians online in December.
Source: Canadian Business