An MNP consumer debt survey says a third of Canadians say they can’t pay monthly bills as rates are set to rise. File photo.
With interest rates set to rise, a new study released Tuesday shows monthly bills are too much to pay off for one in three Canadians.
An MNP consumer debt index report says there is an eight-point jump from the last quarter in the number of Canadians unable to pay monthly bills, including repaying debt.
The survey says Canadians are more worried about their monthly dues since the Bank of Canada raised its benchmark interest rate and is expected to continue that trend in 2018.
40 per cent of the 2,001 residents surveyed are concerned about their finances if interest goes up further and a third are fearful it could move them to bankruptcy.
Almost half say they will take on more debt to help pay expenses over the next year.
The amount of disposable income for those who can cover their bills is also shrinking, with an average of $631 remaining after monthly fees are paid.
That is 15 per cent below the previous quarter.
With files from the Canadian Press.
Andy Neal
