Debt worries rise amid higher interest rates and persistent inflation: MNP report

A new report suggests Canadians’ worries about debt are rising amid higher interest rates and persistent inflation.

Bankruptcy trustee firm MNP says its quarterly consumer debt index fell 15 points since its last survey to an all-time low of 77 points.

A lower score on the index suggests higher anxiety about debt.

MNP president Grant Bazian said inflation is eroding household budgets and, at the same time, financially fragile and over-leveraged Canadians face sharply rising borrowing costs.

The report, based on online interviews conducted in December, said the percentage of Canadians concerned about their debt rose 7 percentage points to 47%, a record high.

It said 64% of Canadians say that as interest rates rise they are more concerned about their ability to pay their debts, while 59% say if interest rates go up much more, they will be in financial trouble.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.