Canadians unable to cover debt, bills despite interest rate cuts [Video]

Half of Canadians are $200 or less away from being unable to cover their monthly bills and debt payments, according to MNP Ltd.’s quarterly report on consumer debt.

“Despite interest rates decreasing, people are still concerned,”said Grant Bazian, president of insolvency firm MNP.

The survey, conducted by Ipsos, found fewer Canadians expect their debt situation to improve in the coming year while a growing number believe it will worsen. More than half say they don’t think they will be able to cover all their living and family expenses in the next year without accruing more debt.

MNP’s Consumer Debt Index, which measures Canadians’ attitudes toward their debt and their ability to pay their bills,dropped to the second-lowest level since it began tracking in 2017. Meanwhile, Canadians’ personal debt rating hit an all-time low. A third of respondents said they are insolvent, with women more likely than men to be $200 …