Photo: The Canadian Press
The evidence keeps pouring in; British Columbians have never been more concerned about their finances than they are right now.
The latest MNP Consumer Debt Index shows more people (43%) are concerned about their current debt levels, which is a 9% jump from the company’s survey in December.
“Our results underscore how vulnerable Canadian households are to income interruption,” MNP president Grant Bazian said in a press release. “Over the next few months we’ll likely see an unfolding of two crises: the global pandemic and the bursting of the Canadian consumer debt bubble.”
Four in 10 British Columbians are teetering on the brink of insolvency, which means they are $200 or less away from not being able to pay all their bills each month. This includes nearly one in five (18%) who say they are already unable to meet all their debt obligations every month.
Nearly three in 10 B.C. residents (28%) say they are worried either themselves or someone in their household could lose their job, an increase of six points since December.
Meanwhile, exactly 25% say they are not confident in their ability to cope financially with the loss of employment, change in wages or seasonal work without going further into debt.
“When it comes to personal finances, those who were already deeply indebted and have now suddenly lost their jobs need to go through the right channels for support,” MNP licensed insolvency trustee Lana Gilbertson said. “One of the worst things for households to do right now is panic and run up credit cards or take out payday loans.
“Those who are in danger of missing any payments should communicate with their creditors right away and seek debt advice from a licensed professional.”
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