Many of those well-heeled and well-fed consumers are actually $200 or less away from financial insolvency at month-end. This staggering number has jumped to 46 per cent, up from 40 per cent in the previous quarter, as interest rates rise, reveals a new poll.
A survey conducted for insolvency firm MNP Ltd. in December also found that 31 per cent of Canadians say they don’t make enough to cover their bills and debt payments, up seven per cent from the September poll.
The results released Monday also indicated that 51 per cent of respondents say they are feeling the pinch of interest rate increases, up from 45 per cent a quarter ago.
As well, 45 per cent of those surveyed say they will need to go further into debt to pay their living and family expenses.
Canadians’ finances have come under increased pressure after the Bank of Canada introduced five rate hikes since mid-2017, in response to the stronger economy. Central bank governor Stephen Poloz kept his benchmark interest rate unchanged earlier this month at 1.75 per cent but has signalled that more rate increases will still be necessary “over time.” -CINEWS