More Canadians are $200 or less away from financial insolvency, increasing since the last financial quarter.
According to an Ipsos conducted for MNP, which surveyed 2,070 Canadians online from March 13-24, the number of Canadians who are $200 or less away from bankruptcy has grown to 48 percent.
That represents a 2 point increase since the previous quarter’s survey.
The survey also found that for 35 percent of Canadians, an increase in interest rates would represent a serious threat of financial insolvency.
Thankfully, the interest rate was recently frozen for the near term.
“Canadians appear to be maxed out with no real plan for paying back what they have borrowed,” said MNP President Grant Bazian in a release. “This raises many alarming questions about how and if consumer debt will be repaid, particularly if conditions deteriorate or interest rates rise.”
“This isn’t simply a matter of people living beyond their means. The reality is that too many households simply cannot make ends meet, however hard they try,” Bazian said.
Insolvency rates broken down
According to the survey, the threat of insolvency rose the most among Atlantic Canadians, with 55 percent falling into the $200 or less category. Atlantic Canada was followed by Quebec(51%) and Ontario(48%).
Women (53%) where also 11 points more likely than men (42%) of being $200 or less from bankruptcy.
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