As Canada prepares for further interest rate hikes and the possibility of a recession, one survey found that 60% of Canadians are concerned about the potential impact of rate hikes.
MNP is one of the largest bankruptcy companies in the country, To tell Since we started tracking it in 2017, more Canadians are worried about interest rates than ever before, with renters and low-income households being the most financially vulnerable to the impact of an interest rate hike.
“These groups will have to be extra careful with their spending in the coming months to avoid financial hardship,” said MNP President Grant Bazian.
The Bank of Canada is expected to raise interest rates by 0.5 to 3/4 percent on 26 October.
“Canadian households with household incomes of less than $40,000 are most likely to be affected by rising interest rates, worry about their ability to repay their debts, and fear that rising interest rates may cause them financial problems. Rising interest rates are pushing them closer to bankruptcy,” Bazian said.
‘Challenging months ahead’
Finance Minister Chrystia Freeland said the independence of the Bank of Canada was important to ensure stability. She acknowledged that inflation is too high and that life is financially difficult for many people right now.
“I’m not going to sugarcoat it, nor do I’m going to claim there won’t be hard times in the coming months,” Freeland told reporters in Gatineau on Oct. 17.
Rents are more concerned about rising interest rates than homeowners. An MNP survey found that 45% of his renters said he could be headed for bankruptcy due to rising interest rates.
Canada’s inflation eased slightly in September, but food costs continued to rise.
“Small credit card expenses are often overlooked, but they can actually add up,” says Bhajian, noting that people struggling with debt should avoid adding unwanted items to their credit card statements. We recommend that you check for
“Start reducing by canceling subscriptions that you rarely or no longer use, and see if there are overlapping services that you can reduce. Set reminders to cancel ahead of time.Always review your bills monthly with a critical eye to check your recurring spending and cut costs wherever possible,” he said.
According to the survey, 84% of Canadians said they would pay more attention to their spending as interest rates rise.
More than half of Canadians say they are already feeling the effects of high interest rates, and just over a fifth say they do not have a firm understanding of the impact of higher interest rates on their financial situation. increase.
Canadian Press contributed to this report.
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David Wagner is a reporter for the Epoch Times based in Winnipeg.