This is hard to believe, but apparently more than half of all Canadians are just $200 away from not being able to pay their bills.
“With such a small amount of wiggle room, any kind of unanticipated hardship, such as a job loss or even a car repair, could send an already struggling family into financial despair,” said Grant Bazian, president of MNP’s personal insolvency practice, which is one of the largest in Canada.
For 10 per cent of Canadians, the margin of error when it comes to household finances is even thinner, at $100 or less.
But those with anything at all left at the end of the month were in better shape than many: A whopping 31 per cent of respondents said they already don’t make enough to meet all their financial obligations.
Then there’s this little detail:
Another hair-raising finding from the survey: Roughly 60 per cent said they don’t have a firm grasp of how interest rates affect debt repayments.
The statistic helps explain why many indebted Canadians end up taking on more debt and high-cost loans, said Bazian. “That’s how so many end up in an endless cycle of debt,” he noted.
Shouldn’t be a problem, interest rates are low forever now aren’t they?
Read the full article over at Global News.
