A new report reveals that half of Canadians are dangerously close to financial instability, struggling to cover their monthly expenses. Despite falling interest rates, Canadians express growing concern about their debt situation and financial future.
Half of Canadians are $200 or less away from being unable to cover their monthly bills and debt payments, according to MNP Ltd.'s quarterly report on consumer debt . 'Despite interest rates decreasing, people are still concerned,'said Grant Bazian, president of insolvency firm MNP. The survey, conducted by Ipsos, found fewer Canadians expect their debt situation to improve in the coming year while a growing number believe it will worsen.
More than half say they don't think they will be able to cover all their living and family expenses in the next year without accruing more debt. MNP's Consumer Debt Index, which measures Canadians' attitudes toward their debt and their ability to pay their bills,dropped to the second-lowest level since it began tracking in 2017. Meanwhile, Canadians' personal debt rating hit an all-time low. A third of respondents said they are insolvent, with women more likely than men to be $200 or less away from insolvency.'Canada is one of the highest of all the Western nations in the world for the debt ratio ... the volume of the debt is catching up to people,' he added. Canadians are also feeling job anxiety, with two in five respondents worried someone in their household could lose their job. Bazian said that figure is the highest it's been in the history of this report. The overall trend in Canada's unemployment rate has been steadily rising. Despite a slight dip in December to 6.7 per cent, according to Statistics Canada, unemployment is still elevated. Bazian said people's perception of their financial situation is usually based on what's immediately pressuring them.While economic indicators or interest rate changes take a bit of time to show their effects in daily life, Bazian said they can still also affect consumers' perceptions of how they are faring financially. Despite declining interest rates, Canadians' disposable income is still shrinking and many feel unprepared to handle a potential unexpected big financial event, such as a car repair or purchase, or a job loss. 'We're still having a growing number of people anticipating that their financial situation will worsen, that they're going to have a harder time paying off their debt in the future,' said Bazian. The financial cushion for Canadians is also shrinking. Respondents said they have on average almost 16 per cent less disposable income left over at the end of the month compared with last quarter. The Bank of Canada has cut its key interest rate significantly from recent highs -- the rate now sits at 3.25 per cent after five cuts last year down from five per cent. It's expected to continue lowering rates this year. 'We're still seeing a lot of people concerned about interest rates being where they are,' said Bazian
CONSUMER DEBT FINANCIAL ANXIETY INTEREST RATES INCOME CANADA
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Half of Canadians Just $200 Away From Insolvency Amid Growing Debt WorriesA new report reveals that Canadians are facing increasing financial strain with half being just $200 away from insolvency. Despite declining interest rates, Canadians are struggling with mounting debt and a shrinking financial cushion, leading to concerns about job security and future financial stability.
Read more »
Ontario to Send $200 Cheques to Adults and $200 to Eligible ChildrenOntario is set to send $200 cheques to all adults and $200 to eligible children as part of a new cost-of-living initiative. The cheques, funded by changes to the capital gains tax, are expected to cost the government $3 billion and will be sent out in late January or early February.
Read more »
Ontario to Send $200 Rebates to 15 Million Residents in Late January or Early FebruaryOntario residents will receive $200 rebate cheques in late January or early February as promised by the provincial government. The rebates, announced in October, aim to alleviate the financial strain on citizens due to the high cost of living. Every taxpayer will receive a cheque, with an additional $200 for each eligible child. The program is estimated to cost the province approximately $3 billion and is funded by increased provincial sales tax revenue and other sources.
Read more »
Ontario Taxpayers to Receive $200 Rebate in Early 2025Ontario residents will receive a $200 tax rebate in early 2025 to offset the costs of the federal carbon tax and interest rates.
Read more »
A Dyson Vacuum For $200? This Walmart Deal Is Hard To BelieveA culture and product journalist for over ten years, Kevin is an expert in men’s style, gaming, coffee, hiking, gear, and all things outdoors. He most recently worked as a Reviews Editor for Runner's World, Bicycling, and Popular Mechanics, and previously served as Style Editor for Reviewed, a top product recommendation site owned by USA TODAY.
Read more »
Prosecutors Face Challenges, Sarkozy Guilty in Corruption Case, Canadians React to Freeland's ResignationThis article covers various news stories including legal challenges for Luigi Mangione's murder charge, Nicolas Sarkozy's conviction for corruption, Chrystia Freeland's resignation from the Canadian cabinet, and the House of Commons adjournment.
Read more »