Jul 10, 2023
By Jane Brown
Just over half of Canadians say they are $200 away or less from not being able to pay all of their bills at the end of the month as higher interest rates and a rising cost of living have stretched budgets.
A report by insolvency firm MNP Ltd. says the result for the July report is up six percentage points from 46-percent in April.
MNP president Grant Bazian says the escalating burden of household bills and food prices has intensified Canadians’ financial anxiety and is further compounded by increased debt-servicing costs, particularly for those who are deeply indebted.
The report also says 35-percent of those asked say they already don’t make enough to cover their bills and debt payments, up from 30 per cent in April and a record high for the survey.
In addition, it also says a record 48-percent of those surveyed are concerned about their current level of debt.
Household debt has been identified as a key risk for the economy by the Bank of Canada which is scheduled to make its next interest rate decision on Wednesday.
There is every indication the overnight key lending rate will be hiked from the current rate of 4.75-percent.