“Debt Hopelessness”: Half Of Canadians On Verge Of Insolvency

This creates a serious economic vulnerability for our country.

A new survey by MNP shows a huge number of Canadians on the verge of insolvency.

A stunning 50% of respondents to the MNP Consumer Debt Index say they are within $200 of being unable to pay their bills on a monthly basis.

49% also say they “aren’t confident,” in paying their expenses unless they add on even more debt.

In a press release, MNP President Grant Bazian said “Our findings may point to a shift among some Canadians from debt apathy to debt hopelessness. Feelings of hopelessness can make people feel like giving up on ever paying down their debt or, worse, ignoring the debt as it piles up higher.”

As we know, a combination of a higher debt burden and a sense of hopelessness is incredibly dangerous for the country and the economy.

There’s more room for concern, as noted in a recent BNN Bloomberg article:

“The survey underscores the extent to which household balance sheets have become stretched in Canada, but it’s by no means the only indicator as the Bank of Canada prepares to release its next interest rate decision on Wednesday.

One week ago, the central bank’s survey of consumer expectations revealed a widening gap in spending growth expectations versus anticipated income growth, suggesting consumers will either have to borrow more or cut their spending plans.”

If Canada had a government that embraced a mentality of growth and abundance, and was willing to unleash the true economic potential of Canada, it would be possible to overcome this debt problem through immense economic growth.

Unfortunately, the current Liberal government is more focused on international virtue-signalling and strangling Canada’s energy industry & potential wealth. As a result, the looming consumer debt problem makes our economy dangerously vulnerable to a serious crisis.

Spencer Fernando

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Jane

It WILL only get worse as the Liberals LITERALLY chase jobs out of Canada by their policies of NOT building pipelines and continually raising AND adding new taxes – like carbon taxes -across the boards that affect private individuals and corporations. The ONLY solution to this problem IS waking people up, and then getting Trudeau the hell out of office.

Ron Shaw

Oh don’t worry , be happy , smoke a joint . That’s Trudeau’s liberal plan for Canadians ,meanwhile he is living high on the taxpayers dime , worldly holidays , trust fund baby , no worries there fellow Canadians he has a plan and will let us know what it is after he figures it out , or calls up Harper to find out how it’s done . Yup he’s just not ready , rings a financially irresponsible bell , and of course we all learned that budgets don’t really balance themselves . Just light up another one of those… Read more »

Major Tom

In the world of debt…our federal and provincial governments are great role models……

Christian

I have nothing good to say about their spending& economic policies.it is a shipwreck.

Brian Dougan

mnp.ca: About Us. MNP is a leading national accounting, tax and business consulting firm in Canada.