9 July 2018

As you know, the central bank has raised its key lending rate three times since the last summer already, and now investors predict another increase to 1.5% this Wednesday.

Canadians have been listening to numerous warnings about future borrowing costs growth, and some of them, says MNP, really followed the advice, as 61% of respondents say their debt situation has improved.

However, there are still a lot of people who are facing significant problems with their debt loads.

The report says 27% of respondents don’t have wiggle room after they make their monthly debt payments. Another 44% are in $200 of insolvency each month.

“It’s important to understand that the level of household debt remains very high in Canada”, – Bazian said. “If people are already struggling to avoid bankruptcy, slowly reducing spending will not help them in case rates go up”.