Pandemic money worries saw a quarter of Canadians fall behind on monthly bills and a fifth borrow from friends and family, says in-house research by the federal Financial Consumer Agency of Canada. 40% of Canadians surveyed said they “had to use my savings due to the Covid-19 crisis,” typically between $2,000 and $10,000..A total 24% of Canadians surveyed said their monthly household expenses were more than they earned. A total 35% said they were “keeping up but sometimes it is a struggle.”.The Agency responsible for investigating consumer complaints under the Bank Act said it commissioned the research “to monitor how Canadians are dealing with the COVID-19 pandemic and the impacts on their financial well-being.”.A majority said they worked hard to put aside a rainy day fund for emergencies equal to 30 to 90 days’ worth of expenses. However money worries were common, according to the 2021-22 Covid-19 Financial Well-Being Survey..A total 22% of Canadians surveyed said they borrowed from friends or family to meet expenses. 13% told researchers they were “falling behind with bills or credit commitments.”.Findings were based on questionnaires with 8,412 people nationwide. The Agency paid $249,885 for the study by Ekos Research Associates Inc. Other findings showed:.• 38% of Canadians surveyed had an outstanding credit card balance;• 53% agreed, “Because of my money situation I feel I’ll never have the things I want in life”;• 64% went deeper in debt due to the pandemic, typically by under $10,000;• 65% agreed, “I am just getting by financially”• 65% agreed, “I am concerned the money I have or save won’t last”;• 71% agreed, “My finances control my life.”.A separate 2021 study by Statistics Canada found from the beginning of the pandemic many Canadians used federal relief cheques to pay down their debts. Consumers paid off $16.6 billion in credit card balances said a study..“Canadian households began to see their disposable income rise during the pandemic due in part to limited opportunities to spend money during the lockdowns as well as the monetary support provided by governments such as the Canada Emergency Response Benefit,” said StatsCan..However Canadians’ share of the net federal debt soared over the same period to $24,074 per capita, a record. Parliament in 2021 raised its debt ceiling 56% under the Borrowing Authority Act from $1.168 trillion to $1.831 trillion. Prime Minister Justin Trudeau at the time said Parliament “took on debt so Canadians don’t have to.”.“What does that even mean?” Senator Yonah Martin (B.C.), Deputy Leader of the Opposition in the Senate, earlier told legislators. “Does the Prime Minister not understand public debt must be repaid by public money which comes from taxes?”.“The government has no money of its own,” said Senator Martin. “It only has money it takes from the taxpayers.”
