Shiloh
Editor, Senior Moderator
Source: https://www.bnnbloomberg.ca/53-of-c...insolvency-mnp-1.1587379#.YG75o-RgfzA.twitter
53% of Canadians on the brink of insolvency: MNP survey
By Pattie Lovett-Reid
Chief Financial Commentator, CTV
A new survey by MNP Ltd. has found that 53 per cent of respondents said they are $200 or less away from not being able to meet all of their monthly bills and debt obligations. The number is alarming as it marks a five-year high in the agency's consumer debt index and marks a 10-point jump from a December survey.
This number includes the 30 per cent who said they are already insolvent, with no money left over at the end of the month.
Government support programs offered up a little financial flexibility over the past year but, at best, these programs were intended to be temporary. In many ways COVID-19 benefits masked the seriousness of Canadians who were drowning in debt.
?The anxiety Canadians are feeling about making ends meet - or already unable to do so - tells us we may eventually see an avalanche of households falling behind on payments or defaulting on loans, mortgages, car payments or credit cards,? said Grant Bazian, president of MNP LTD, in the report published Thursday.
Households may have tried to save more and spend less amid the pandemic, and - to be fair - some have been very successful at doing just that. However, there are others who have taken on more debt due to job loss, wage reductions or desperately trying to keep small businesses afloat.
According to MNP, a quarter of Canadians took on more debt amid the pandemic. Among respondents, 20 per cent said they used savings to pay bills, 14 per cent used credit cards, seven per cent used a line of credit, while three per cent took out a bank loan or deferred mortgage payments, respectively...
53% of Canadians on the brink of insolvency: MNP survey
By Pattie Lovett-Reid
Chief Financial Commentator, CTV
A new survey by MNP Ltd. has found that 53 per cent of respondents said they are $200 or less away from not being able to meet all of their monthly bills and debt obligations. The number is alarming as it marks a five-year high in the agency's consumer debt index and marks a 10-point jump from a December survey.
This number includes the 30 per cent who said they are already insolvent, with no money left over at the end of the month.
Government support programs offered up a little financial flexibility over the past year but, at best, these programs were intended to be temporary. In many ways COVID-19 benefits masked the seriousness of Canadians who were drowning in debt.
?The anxiety Canadians are feeling about making ends meet - or already unable to do so - tells us we may eventually see an avalanche of households falling behind on payments or defaulting on loans, mortgages, car payments or credit cards,? said Grant Bazian, president of MNP LTD, in the report published Thursday.
Households may have tried to save more and spend less amid the pandemic, and - to be fair - some have been very successful at doing just that. However, there are others who have taken on more debt due to job loss, wage reductions or desperately trying to keep small businesses afloat.
According to MNP, a quarter of Canadians took on more debt amid the pandemic. Among respondents, 20 per cent said they used savings to pay bills, 14 per cent used credit cards, seven per cent used a line of credit, while three per cent took out a bank loan or deferred mortgage payments, respectively...
