Some Canadians are feeling a little more optimistic about their debt with the prospect of interest rate cuts on the horizon, said MNP Ltd.
The insolvency firm’s Consumer Debt Index metric showed a significant rebound in the first quarter of 2024 after 12 months of low scores, according to its latest report.
More than a quarter of Canadians say they perceive their current debt situation as better than a year ago.
Fewer Canadian households than last quarter, at 41 per cent, say they are concerned about their current level of debt.
“Things are not as bad as they were: that’s the main theme of the latest report,” MNP president Grant Bazian said in the release.
But despite the uptick in consumer sentiment, Canadian households are still feeling the squeeze, he added, as more mortgage renewals loom and the cost of living continues to rise.
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