Growing Concern about Debt and Rising Interest Rates

The enduring financial impacts of COVID-19 coupled with the pressures of rising interest rates and a higher cost of living are weighing down Canadians’ confidence in their personal finances, according to the MNP Consumer Debt Index which is conducted quarterly by Ipsos on behalf of MNP LTD.

Now in its twentieth wave, the Index tracks Canadians’ attitudes about their debt situation and their ability to meet their monthly payment obligations. It remains at an all-time low since its inception in June 2017, dropping one point in the first quarter of this year.

Interest rate hikes have more people worried than last quarter, with four in 10 (39%) Canadians saying rising rates could drive them closer to Bankruptcy — a notable four-point increase since December. Six in 10 (57%, +3pts) say they’re more concerned about their ability to pay their debts.