1 in 3 fear rate rises could move them towards bankruptcy
BoC expected to increase interest rates
Steve Randall
Canadian Real Estate Wealth
With the Bank of Canada widely expected to increase interest rates Wednesday, a poll from debt advisors MNP shows rising concern over higher rates.
The survey, conducted by Ipsos, found that 1 in 3 Canadians are worried that rising interest rates could push them towards bankruptcy, up 6% since June.
More than half (52%) of respondents said that they are concerned about affording their debts as rates climb, that’s up 3% since June.
The share of those who say they are feeling the effects or recent rate rises; and the share who say future rises could put them in financial trouble; both hit 45%.
Almost two thirds of both Millennial and Gen X respondents are concerned about the impact of interest rate rises on their ability to service debts, while Boomers are less concerned (40%).
The poll reveals that 80% will cut back on spending to counter the effects of rising rates and there is some optimism about debt situations with 28% saying theirs has improved in the past year, 39% expecting improvement in the next year, and 50% saying improvement will be within 5 years.
Two in five said they regret the level of debt they have.
Albertans (20%) are most likely to say their current debt situation is worse, followed by residents of Atlantic Canada (17%), Saskatchewan and Manitoba (15%), Ontario (13%), Quebec (10%), and British Columbia (8%).
Quebec residents (49%) are most likely to rate their personal debt situation as good, followed by residents British Columbia (45%), Ontario (38%), Saskatchewan and Manitoba (34%), Alberta (33%) and Atlantic Canada (28%).
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