A growing number of Canadians are living on the financial edge, taking on more debt just to cover everyday costs, according to testimony delivered to a Commons committee that paints a bleak picture of household finances.Blacklock's Reporter says appearing before MPs, insolvency trustee Grant Bazian warned that many households are dangerously exposed to even minor economic shocks, with little room left to absorb rising costs or unexpected setbacks. National household debt has climbed to $3.2 trillion, including more than $2 trillion in mortgages, based on figures from Statistics Canada.“Many Canadians have no margin for error,” Bazian told the finance committee, cautioning that job loss, illness or interest rate hikes could quickly push families into crisis. While inflation has eased, he said the lasting surge in prices has permanently strained budgets, particularly as wages lag behind.Drawing on seven years of data from his firm’s Consumer Debt Index, Bazian said Canadians are no longer bouncing back from financial shocks but instead adjusting to what he described as ongoing economic pressure. He cited declining confidence, heavier reliance on credit for essentials, shrinking savings buffers and increasing stress levels across households.Among the most alarming findings: a growing share of Canadians are hovering just $200 away from insolvency each month, meaning even small disruptions could tip them into financial collapse..Conservative MP Greg McLean pressed Bazian to clarify the figure during committee questioning.“They are using more debt to survive,” Bazian replied, warning the situation cannot continue indefinitely. While many are managing minimum payments for now, he said a breaking point is inevitable when a major life event hits, such as job loss or divorce.Bazian also flagged a shift toward high-interest borrowing, with more Canadians turning to costly credit products that can trap them in long-term debt cycles. By the time individuals seek help, he said, many have already maxed out credit cards, taken on expensive loans and repeatedly refinanced their homes.The latest MNP Consumer Debt Index, released April 13, found 74% of respondents say rising costs for essentials like food and fuel are squeezing their finances. Another 43% reported being within $200 of insolvency, up from the previous quarter, while 29% said their income is no longer enough to cover bills and debt obligations.
