Debt increasingly worries Canadians amid rising interest rates and cost of living

In the report of the bankruptcy firm MNP Ltd. it is said that 52% of Canadians say they are only $200 away from not being able to pay all their bills at the end of the month as higher interest rates and rising costs of living have strained household budgets.

The result of the July report jumped six percentage points from 46 percent in April.

MNP President Grant Bazian says the growing burden of bills and food prices has heightened Canadians’ financial worries and is exacerbated by rising debt servicing costs, especially for those heavily indebted.

The MNP consumer debt service attitude index fell to 83 in the latest report from 89 in April as Canadians expressed a more negative view of their personal finances and debt.

The report says 35% of those polled (an all-time high in the survey) say they no longer earn enough to cover their bills and debt payments, up from 30% in April. It also says that a record 48% of those surveyed are concerned about their current level of debt.

Canadian household debt has been cited by the Bank of Canada as a major risk to the economy. Recall that already this Wednesday the central bank should make its next decision to change the key interest rate.