Over 60% of British Columbians say as interest rates rise, they are more concerned about how to pay off their debt.
That’s according to the latest Consumer Debt Index from MNP.
Leah Drewcock is a licensed Insolvency Trustee in Prince George who says there was another stat that was quite alarming to see, given the tough economic climate.
“One of the things that are worrying to me is that 58% of British Columbians are saying they are struggling with rising costs to be able to feed themselves and their families. To me, that is a bit of a concern.”
She adds in order for people to pair down their debt, it’s key to set up a budget and stick to it.
“Really knowing how much money you have coming into the household and how much you have available to pay the living costs and then to repay debt is extremely important. When you look at the budget and if it turns out that it is very little, no, or even negative balance left at the end of the month, then it’s time to make some tough decisions.”
“It can be a bit scary looking at the cost of living right now.”
Nearly half of the provincial residents regret the amount of debt they have taken on in life.
The latest update finds significantly fewer British Columbians are confident in their ability to cover all of their living/family expenses in the next year without going further into debt (52%), plunging a record seven points from the previous quarter.
Additionally, more British Columbians this quarter say they are concerned about their current level of debt (43%).
Furthermore, two in three provincial residents (65%) say they are already feeling the effects of interest rate increases, making a five-point jump since last quarter. Spiking 11 points from last quarter, significantly more now say their ability to absorb an interest rate increase of one percentage point has worsened (24%).