A recent survey carried out by Ipsos on behalf of the Meyers Norris Penny(MNP) claims that one-third of Canada’s population is concerned about the possibility of going bankrupt.
The survey revealed that 33 percent or one-third of the respondents expressed concerns about high-interest rates which they feel could thrust them into bankruptcy.
The number of concerned Canadian has risen by a significant margin compared to those in a previous survey conducted in June.
MNP President Grant Bazian claims that the results of the recent study are expected considering the current interest rates.
“It’s just common nature where people would think: ‘Interest rates are going up. I’m concerned,’ but 33 percent seems to be a bit of a disturbing number for sure,” stated Bazian during a BNN Bloomberg interview.
Higher interest rates are a source of concerns for many Canadians
Meanwhile, 45 percent of the respondents claim that they had already started to feel the effects of the higher rates.
The MNP president also revealed that many Canadians, especially the young are worried that they might not be able to pay their car and mortgage loans.
The survey revealed that 62 percent of the young Canadians have concerns about being able to pay their bills. 46 percent of them are worried that they might be forced into bankruptcy.
The Canadian government claims that the economy is doing well, but that is not the case. Household debt has decreased slightly but the higher rates add to the burden, and the effects will be more pronounced in the future.
Statistics Canada provided data which shows that Canadians owed an average of $1.69 for each disposable income dollar in Q2 of 2018.
Bazian believes that Canadians are stressed by major expenses even though the recent survey did not inquire about the respondents’ housing concerns.
Countering the high rates through better spending habits
Bazian believes that high mortgages as an income percentage will be a source of concern, especially in Vancouver and Toronto.
It is not all bad news since the survey results also highlight that many Canadians are still optimistic. 79 percent of the respondents plan to handle the higher interest rates by spending their money more cautiously.
28 percent of the respondents believe that their debt situation has improved ever since they took more control of their spending habits.