A new poll says the number of Canadians who are $200 or less away from financial insolvency at month-end has jumped to 46 per cent, up from 40 per cent in the previous quarter, as interest rates rise.
A survey conducted for insolvency firm MNP Ltd. in December also found that 31 per cent of Canadians say they don’t make enough money 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.
MNP’s president Grant Bazian says many Canadians have so little wiggle room that any rise in living costs or interest payments can tip them over the edge.
Ipsos, which conducts the quarterly poll for MNP, surveyed 2,154 Canadians online from Dec. 7 to Dec. 12.
WATCH BELOW: According to Statistics Canada, Canadians owe $1.78 in debt for every dollar of income. The good news is increased household debt has been slowing. The bad news? Income growth to pay down that debt has been sluggish. Online reporter Erica Alini gives us a road-map on how to prepare for what’s coming.
The results are more positive than in May 2017, when MNP said more than half of Canadians were living within $200 per month of not being able to pay all their bills, and 31 per cent of respondents said they already didn’t make enough to meet all their financial obligations.
Ipsos said respondents who showed a low level of confidence about their understanding of their personal finances were significantly more likely to feel anxious about their debt.
The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.