Three-tenths of Canadians admit to turning to bill-splitting strategies such as carpooling, buying in bulk, sharing subscriptions and childcare, and cohabiting with others, according to the latest MNP Consumer Debt Index conducted by Ipsos on behalf of MNP LTD. Ipsos found 13% of Canadians say they are saving money by living with family, friends, or partners or by seeking out additional roommates or co-living spaces. Additionally, it said 28% have resorted to eating less to save money. “We’re witnessing a bill-splitting boom as Canadians adapt to the high cost of living,” said MNP LTD President Grant Bazian in a press release.“Strategies like sharing expenses and co-living arrangements showcase not only resourcefulness but also the financial pressure many are facing.”In response, Bazian said these measures “reflect the harsh reality of soaring living costs, compelling Canadians to find new ways to save.” He said it is concerning close to three-tenths are cutting back on food to make ends meet. Ipsos said 51% have tried to save money by grocery shopping more strategically, 46% are avoiding impulse purchases, and 44% have stopped eating in restaurants or getting takeout. It added the bill-splitting trend is more common among Canadians aged 18 to 34 and those living in British Columbia and Alberta. Canadians are building up the bank this quarter, reporting they have on average $155 more left over at the end of the month by reaching $937 — the largest amount of money they have had after all expenses in the last five years. Four-two percent said they are $200 or less away each month from financial insolvency — the lowest recorded proportion since September 2018. “While cost-saving behaviours and lower interest rates have positively impacted Canadians’ perceived financial well-being, a significant minority — close to four in 10 — still report being on the brink of insolvency, indicating they are struggling to make ends meet,” said Bazian. “Still, financial pressure is easing, providing individuals with more flexibility to manage their debts and invest in their future.”Ipsos went on to say 24% believe they are much better equipped to manage an interest rate increase of one percentage point than they used to be, increasing three points since the last quarter. It said more Canadians are looking positively to the future, with 31% expecting their debt situation to improve when looking ahead one year from now and 12% believing it will worsen. Following three interest rate cuts this year, 48% of Canadians said they are concerned about their ability to repay their debt, even if interest rates decline. Forty-six percent of those who are co-habiting and 44% who are bill-splitting are at risk of insolvency.Despite some relief, Bazian said the difficult truth “is that for those grappling with significant debt, cost-cutting measures alone may not provide the support they need.” He said seeking guidance from a Licensed Insolvency Trustee can be a useful first step for people looking to regain control of their finances, and bankruptcy is not the only option. Licensed Insolvency Trustees provide unbiased advice on options such as debt consolidation and management plans, budgeting, consumer proposals, and bankruptcies. They are the only federally-regulated debt professionals who are authorized to administer government-regulated insolvency solutions such as bankruptcies and consumer proposals.While bill-splitting strategies can offer temporary relief, Bazian said they often do not address the root of deeper debt issues. “For those feeling overwhelmed by bills and debt, seeking advice from a Licensed Insolvency Trustee is a crucial step toward long-term financial stability,” he said. Canadians were feeling negative about their personal finances in the last quarter, even following the recent interest rate cut by the Bank of Canada, according to the MNP Consumer Debt Index conducted by Ipsos on behalf of MNP LTD and published in July..Poll finds Canadians feel pessimistic about their debt situation .Ipsos said 56% of Canadians expressed concern interest rates have not gone down fast enough to provide the financial relief they require, and 57% will need interest rates to go down way more before their financial situation improves. It said two-thirds desperately need interest rates to go down. “Canadians may have hoped for a more significant cut to interest rates or a quicker impact from the reduction, leaving many feeling disheartened,” said Bazian.
