More than half (53%) of those polled in early March said they are $200 or less away from not being to meet their bills and debt payments each month, a jump from what was reported in December.

More than half (53%) of those polled in early March said they are $200 or less away from not being to meet their bills and debt payments each month, a jump from what was reported in December.

53% of Canadians teetering the brink of insolvency: survey

A majority of Canadians admit they’re just $200 away from not being able to pay their monthly bills

A majority of Canadians admit they’re just $200 away from not being able to pay their monthly bills.

That’s according to MNP Ltd. latest quarterly report survey Thursday (April 8) that accounted for 2,001 adult Canadians between March 4 and 9.

It found 53 per cent of households are teetering the brink of insolvency with one in three saying they have no money left over at month’s end.

Canadians, on average, are left with $625 after making monthly bill and debt payments – down 15 per cent from the $733 reported in December.

READ MORE: Canadians debt levels hit record highs at end of last year, says CMHC

“The number of Canadians with virtually no wiggle room in their household budgets has reached a five-year high,” said Grant Bazian, president of the national accounting firm.

A quarter of Canadians took on more debt amid the COVID-19 pandemic.

Approximately 14 per cent used credit cards and seven per cent said they used a new line of credit to make monthly payments.

Data indicates a looming “avalanche of households falling behind on payments or defaulting on loans, mortgages, car payments or credit cards,” Bazian said.

READ MORE: Canadian households added record mortgage debt in late 2020: StatsCan

Respectively, 20 per cent of households dipped into savings to pay their bills and three per cent took out a bank loan or deferred their mortgage payments in order to stay afloat.

“Those taking on more debt are becoming increasingly vulnerable to interest rate increases. They might find that their debt becomes unaffordable when that happens,” Bazian said.

A portion of Canadians, 35 per cent, are concerned those rising interest rates could push them towards bankruptcy.



sarah.grochowski@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

DebtFinances

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta completed 18,412 COVID-19 tests, as reported on Wednesday, for a test positivity rate of 9.5 per cent. (NIAID-RML via AP)
Highest daily count of 2021 so far: Alberta reports 1,699 COVID-19 cases

Variants now make up 59 per cent of Alberta’s active cases

Alberta’s chief medical officer of health Dr. Deena Hinshaw and Premier Jason Kenney say the province would look at adding additional COVID-19 measures in the coming weeks if the virus continues to spread. (Photo by Government of Alberta)
Walk-in COVID-19 vaccination clinic to open in Red Deer

Alberta adds 1,345 new cases of the virus

Public health restrictions on non-essential travel and vacation bookings are being increased in B.C. (B.C. government)
COVID-19: B.C. announces signage along Alberta border to discourage non-essential travel

B.C. extends COVID-19 indoor dining, group fitness ban until May 25

A vial of some of the first 500,000 of the two million AstraZeneca COVID-19 vaccine doses that Canada has secured through a deal with the Serum Institute of India in partnership with Verity Pharma at a facility in Milton, Ont., on Wednesday, March 3, 2021. THE CANADIAN PRESS/Carlos Osorio - POOL
Alberta begins rolling out AstraZeneca COVID vaccine for those aged 40 or older

There are more than 70 pharmacies offering AstraZeneca, including 26 offering walk-in appointments

A lone traveler enters the Calgary Airport in Calgary, Alta., Monday, Feb. 22, 2021. THE CANADIAN PRESS/Jeff McIntosh
VIDEO: Trudeau defends Canada’s travel restrictions as effective but open to doing more

Trudeau said quarantine hotels for international air travellers will continue until at least May 21

President Joe Biden holds a virtual bilateral meeting with Canadian Prime Minister Justin Trudeau. (AP Photo/Evan Vucci)
U.S. to help Canada with more COVID-19 vaccine supply, Biden says

The U.S. has already provided Canada with about 1.5 million doses of the AstraZeneca vaccine

In this image from video, former Minneapolis police Officer Derek Chauvin, center, is taken into custody as his attorney, Eric Nelson, left, looks on, after the verdicts were read at Chauvin’s trial for the 2020 death of George Floyd, Tuesday, April 20, 2021, at the Hennepin County Courthouse in Minneapolis, Minn. THE CANADIAN PRESS/Court TV via AP, Pool
George Floyd’s death was ‘wake-up call’ about systemic racism: Trudeau

Derek Chauvin was found guilty Tuesday on all three charges against him

sign
Alberta Biobord Corp. recently hosted a virtual open house from Stettler

The company plans to develop a fuel pellet and medium density fibre board (MDF) plant near the community

The Rogers logo is photographed in Toronto on Monday, September 30, 2019. THE CANADIAN PRESS/Tijana Martin
Rogers investigating after wireless customers complain of widespread outage

According to Down Detector, problems are being reported in most major Canadian cities

People are shown at a COVID-19 vaccination site in Montreal, Sunday, April 18, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
Nothing stopping provinces from offering AstraZeneca vaccine to all adults: Hajdu

Health Canada has licensed the AstraZeneca shot for use in people over the age of 18

Deputy Prime Minister and Minister of Finance Chrystia Freeland responds to a question during Question Period in the House of Commons Tuesday December 8, 2020 in Ottawa. The stage is set for arguably the most important federal budget in recent memory, as the Liberal government prepares to unveil its plan for Canada’s post-pandemic recovery even as a third wave of COVID-19 rages across the country. THE CANADIAN PRESS/Adrian Wyld
Election reticence expected to temper political battle over federal budget

Opposition parties have laid out their own demands in the weeks leading up to the budget

Most Read