Photo: The Canadian Press
The pandemic and the holiday season have British Columbians feeling extra blue about their finances for 2022.
The latest MNP Consumer Debt Index report indicates those in B.C. are feeling much less confident about their finances than they did three months ago.
Nearly half (45%) who took part in the Ipsos poll indicated they are $200 or less away from being unable to meet all of their financial obligations. That is up 7% from the last poll.
Another 42% say they are worried about their debt level, while 26% are confident in their ability to cope with unexpected events without increasing their debt burden.
“Now, as we near two years into the COVID-19 pandemic, British Columbians are becoming increasingly worried about their household debt,” MNP licensed insolvency trustee Linda Paul said in a press release.
“Financial optimism does typically take a hit as the holiday bills arrive, but it’s the added pressure from the Omicron variant and resulting pandemic fatigue, as well as rising inflation and the potential of interest rate increases around the corner, that have likely led to British Columbians feeling more insecure about their finances.”
If there is a sign of hope, it’s that only 21% believe their current debt situation is worse than it was one year ago.
However, the report also found too many British Columbians are engaging in “bad financial habits,” like paying only the minimum balance on their credit card or borrowing money they can’t afford to pay back quickly.
Also, 15% of B.C. residents reported they were lured in by deals or special days like Black Friday than those in other provinces. That was up 8% from last year. They pointed to lower interest rates as the reason for buying items they otherwise might not be able to afford.
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