Photo: The Canadian Press
The economic situations for half of British Columbians have not been this dire since MNP started tracking its consumer debt index in 2016.
Canada’s largest insolvency practice found in September that nearly half of B.C. residents—48 per cent—are more concerned about their ability to repay their debts than they used to be. That figure is not new.
What is new is B.C. residents, after paying all their bills and debt obligations, are left with an average of $601 at the end of the month. That is the lowest level since tracking began in February 2016, and it is a drop of $129 since June.
“There is less and less wiggle room in household budgets in the province, which makes many increasingly vulnerable to unexpected expenses or increases in living costs,” MNP LTD licensed insolvency trustee Lana Gilbertson said in a press release.
“Many British Columbians don’t have enough to cover their bills each month, let alone put anything away for rainy day savings. That is concerning, because it is most often unexpected expenses that derail personal finances.”
Nearly half of respondents—45 per cent—say they are left with less than $200 each month, including three in ten (26 per cent) who say they already don’t make enough money to cover all their bills and debt obligations each month.
Despite those scary numbers, more British Columbians are actually feeling positive about their personal financial situations. Nearly 30 per cent say their debt situation is better than it was a year ago, and 36 per cent believe it is better than five years ago. Those figures are up five and three per cent, respectively, over August.
“The current holding pattern on interest rates may be giving British Columbians a sense of relief about mortgage payments and other debts,” Gilbertson said. “Still, the fact remains that many are far into the red without a clear path to repayment.”
Image: Contributed
How much money British Columbians have after paying bills and debt obligations each month.
All BC Biz Stories
