The Financial Post reports in its Tuesday edition that consumer debt and personal finances have deteriorated over the past few months.
An unbylined item in the Post reports that more Canadians are hovering close to financial insolvency at the end of the month. Nearly half of Canadians say they are $200 or less each month away from financial insolvency, according to a survey, conducted by Ipsos on behalf of MNP.
This includes one in four who say they have no wiggle room at month-end, as they already do not make enough to cover their bills and debt payments.
MNP president Grant Bazian says: "When there is this little room in the household budget, people can easily get trapped in an endless cycle of debt. 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."
Those surveyed also say they have been broadsided by interest rates that began rising last year.
Just over half of Canadians are concerned about repaying their debts (54 per cent) or think they may get into financial trouble (47 per cent) if interest rates increase, with 35 per cent indicating that a rate increase could push them toward bankruptcy.
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