Nearly half of Canadians veering over the edge of insolvency

The COVID-19 pandemic has had an unprecedented impact upon Canadian purchasing power

Nearly half of Canadians veering over the edge of insolvency

Canadians’ fears surrounding their financial prospects have worsened, with a new MNP LTD survey finding that 49% believe that they are just $200 or less away from insolvency.

Moreover, 25% admitted that they are already unable to pay off their monthly bills. Amid the current outbreak, 46% also said that they are anxious about their household debt levels.

“The global crisis surrounding COVID-19 has delivered an unprecedented financial shock to Canadians at a time when personal finances are already a source of stress for many,” the MNP report noted.

“Our results underscore how vulnerable Canadian households are to income interruption. Over the next few months we’ll likely see an unfolding of two crises: the global pandemic and the bursting of the Canadian consumer debt bubble,” MNP LTD president Grant Bazian stated.

“Many households were already limited in their ability to face any kind of financial disruption. Now, all Canadians are feeling the effects on their paycheques, pocketbooks and stock portfolios. Those who were already saddled with a lot of debt are in economic survival mode.”

A further 34% of respondents expressed concern for the possibility of job losses in their households. As much as 30% are not confident in their financial capabilities in the event of lost income.