More Canadians Are Finding It Tough To Make Ends Meet

More Canadians Are Finding It Tough To Make Ends Meet

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 according to a new poll.

A survey conducted in December found that 31 per cent of Canadians say they don’t make enough to cover their bills and debt payments, up seven percentage points from the September poll. The survey 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. Canadians’ finances have come under increased pressure after the Bank of Canada introduced five rate hikes since mid-2017, in response to the stronger economy. Experts have signaled that more rate increases will still be necessary over time.

Higher interest rates combined with household expenses that outweigh income means that some Canadians will be unable to make any kind of meaningful reduction in their debt. In fact, it means that many will continue to take on more debt, especially if they encounter unexpected expenses.

If you’re looking for a credit counsellor in Toronto, get a quick assessment with us today or call us at 416.900.2324. We will help you develop a plan, reduce your interest costs and get out of debt over time.