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A new survey suggests one-third of Canadians can’t pay their monthly bills, including debt repayments, against a backdrop of rising interest rates.

The quarterly MNP consumer debt index survey finds the number of Canadians who can’t cover their fixed monthly expenses is up eight points since September.

Read: Why millennials won’t be main boon for Canadian housing

It also finds Canadians who are making ends meet have less disposable income, with an average $631 left after paying bills and contributing to debt repayment. That’s 15% less money left over than in the previous quarter.

The survey says Canadians worried more about their debt as the Bank of Canada raised its benchmark interest rate twice last year and is expected to continue the momentum in 2018.

Four-in-10 respondents say they fear financial trouble if interest rates rise much further, and one-in-three agree they’re concerned rising rates could move them toward bankruptcy.

Read: BoC warns of risks for clients with mortgages

More than 70% of respondents say they’ll be more careful with how they spend money as rates move up, and nearly half say they believe they’ll have to take on more debt over the next year to cover expenses.

About the survey: Ipsos, which conducts the quarterly survey, interviewed 2,001 Canadians online between Dec. 8 and 13, 2017.

Originally published on Advisor.ca
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