The proportion of Canadians who are $200 or less away from financial insolvency at month-end has increased by six points since September, from 40 per cent to 46 per cent, according to the latest MNP Consumer Debt Index conducted by Ipsos. (Ryan Remiorz/THE CANADIAN PRESS)

Nearly half of Canadians within $200 of insolvency: poll

Nearly half of Canadians (46 per cent) reported being within $200 of insolvency as of the end of the holiday season, according to the latest MNP Consumer Debt Index conducted by Ipsos.

In addition, nearly six-in-ten (57 per cent) said they were concerned about their ability to repay their debts and three-in-ten (31 per cent) said they do not earn enough money to cover their bills and debt obligations.

December numbers saw significant increases from September 2018, when they stood at 40 per cent, 24 per cent and 45 per cent respectively, according to the survey.

“Our research continues to highlight the fact that many Canadians don’t have enough in the budget to make ends meet, let alone address their underlying indebtedness,” said Grant Bazian, president of MNP Ltd, which bills itself as the country’s largest insolvency firm.

“Higher interest rates combined with household expenses that outweigh income mean that some are unable to make any kind of meaningful reduction in their debt and, in fact, continue to take on more especially if they encounter unexpected expenses,” he added.

The MNP Consumer Debt survey came out the same day another study found that two-thirds of Canadians enter 2019 worried about their financial fortunes.

The Kitchen Table Forecast, a Leger poll of 1,515 Canadians, conducted for non-profit organizations Financial Planning Standards Council (FPSC) and Credit Canada, showed that one-third of Canadians (34 per cent) are concerned that the increased cost of living will put them further in debt.

“Canadians are feeling stressed about their finances and are often at a loss to improve their situation,” said author, personal finance educator and FPSC’s Consumer Advocate, Kelley Keehn.

“This hopelessness can cause people to do nothing, and possibly make their condition worse.”

Uncertainty about an ever-changing job market and economy only intensifies the average person’s confidence and ability to handle the ebb and flow that life inevitably presents, she added.

Categories: Economy, Society
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