“Despite interest rates decreasing, people are still concerned,” said Grant Bazian, president of insolvency firm MNP.
The survey, conducted by Ipsos, found fewer Canadians expect their debt situation to improve in the coming year while a growing number believe it will worsen. More than half say they don’t think they will be able to cover all their living and family expenses in the next year without accruing more debt.
MNP’s Consumer Debt Index, which measures Canadians’ attitudes toward their debt and their ability to pay their bills, dropped to the second-lowest level since it began tracking in 2017. Meanwhile, Canadians’ personal debt rating hit an all-time low. A third of respondents said they are insolvent, with women more likely than men to be $200 or less away from insolvency.
“I think that they just have so much debt and it’s just becoming harder to service,” said Bazian.
“Canada is one of the highest of all the Western nations in the world for the debt ratio … the volume of the debt is catching up to people,” he added.
How is Canada’s unemployment rate trending?
Canadians are also feeling job anxiety, with two in five respondents worried someone in their household could lose their job. Bazian said that figure is the highest it’s been in the history of this report.
The overall trend in Canada’s unemployment rate has been steadily rising. Despite a slight dip in December to 6.7%, according to Statistics Canada, unemployment is still elevated.
Bazian said people’s perception of their financial situation is usually based on what’s immediately pressuring them.
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