53% of Canadians Are C$200 Away From Being Flat Broke: Survey

3 min read | April 09, 2021 02:29 AM AEST | By Shreya Biswas

53% of Canadians Are C$200 Away From Being Flat Broke: Survey

What Does a Recent Study Say About Insolvency in Canada?

The MNP Consumer Debt Index, which is conducted by market research firm Ipsos Group SA, is used to gauge peoples’ ability to pay bills and their response to consumer debt in Canada. Its latest figures pointed that the number of Canadians hanging way too close to financial insolvency has hit a record five-year high.

A study shared by Alberta-based insolvency firm MNP Ltd found that 53 per cent of Canadians felt they were about C$ 200 away from being unable to clear all their bills and debt obligations on time each month. This was a significant 10-point jump from the figures in December 2020.

Among the participants of this study, three out 10 individuals reported that they were already too broke to cover all their payments at the end of each month.

©Kalkine Group 2021

MNP president Grant Bazian noted that the pandemic-related financial aids had given Canadians some sort of “breathing room” over the past year.

Now, however, there could eventually be “an avalanche” of Canadian households failing to clear their bills or defaulting on loans payments as the support programs fade away, he said.

The MNP Consumer Debt Index also found that on an average, Canadian households were left with about C$ 625 every month after all payments were cleared. This figure was down by C$ 108, or 15 per cent, from December 2020.

The study points that this fall in the average leftover income is likely a “reflection” of the various financial support programs coming to an end.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.