A new survey reports almost a third of Canadians aren’t bringing in enough money to cover basic monthly expenses..Thirty-one percent of people who responded to an Ipsos survey conducted for Meyers Norris Penny (MNP), a professional accountancy and business advisory firm, said they don’t earn enough to cover their bills and keep up with debt payments..Almost half of all respondents (49%) said they are within $200 of insolvency..“It’s a bit unnerving. It almost seems unrealistic. But this is what the survey continues to tell us, that people are concerned and that they’re $200 away from not making their financial obligations,” said Grant Bazian, president of MNP, said in an interview with BNN Bloomberg..Two-thousand Canadian adults were surveyed by Ipsos between March 9–15..The survey was conducted about one week after the Bank of Canada raised its interest rate for the first time in four years. The central bank accelerated its mission to combat inflation last week when it delivered its first half-point rise since 2000..The Ipsos survey shows the extent to which some Canadians were being squeezed prior to last week’s interest rate hike..“Our survey is on its twentieth quarter. The index shows the average Canadian is more troubled now than they ever have been with their personal financial situation. People are feeling angst and nervous about matters right now,” Bazian said..Bazian said more than half of Canadians polled (52%) said they’re very concerned with how the Bank of Canada’s interest rate hikes are impacting their finances..Bazian explained pressures on Canadian pocket books are mounting now that the government handouts, debt relief, and payment amnesties of the previous 18 months are now ending. He explained the CRA is now calling in taxes owed and the collection companies are back to business as usual. People have also been structuring their finances around low interest rates that have come to an end..“I like to say the glue that holds all this together was low interest rates. It’s been so low for so long a period that people are structuring their finances around those low interest rates… So when the subsidies and the relief is coming to an end, and the grace periods by some of the lending institutions may be coming to an end, coupled with rising interest rates — I think that’s where you’re getting the nervous tendencies.” Bazian said..The most recent official data from the Office of the Superintendent of Bankruptcy shows 7,392 Canadians filed either for bankruptcy or submitted a proposal to manage debts under alternate arrangements in February. This represents a 12.6% increase from January, and a drop of 1.6% from 2021..By comparison, prior to the pandemic period in Canada there were 11,251 bankruptcy and proposal filings by consumers in February 2020..Amanda Brown is a reporter with the Western Standard.,.abrown@westernstandard.news.,.Twitter: @WS_JournoAmanda
