Canadian Households Struggle with Rising Debts

According to the latest MNP Consumer Debt Index (MNP is one of the largest full-service chartered accountancy and business advisory firms in Canada) released Monday, 3 in 10 Canadians say that they are already insolvent, and half say that they are $200 or less away from being insolvent at the end of the month.

Almost half of respondents said they aren’t confident they will be able to cover their family and living expenses without going further into debt this year, up 2 points since the end of the third quarter of 2019.

Only 27% of respondents were confident that they would be able to cope with an unexpected expense without increasing their debt load.

It’s difficult to think about saving a down payment to buy a home or an investment property in the face of financial difficulty, but if it is your priority, it can be done. It takes a plan, perhaps sitting down with a licensed professional to review finances and set up a budget.