Inflation, interest rates impacting more British Columbians

More than half of British Columbians say they are within $200 of making ends meet each month, according to new data.

Bankruptcy firm MNP Canada’s latest Consumer Debt Index was released this week, and sheds light on the effects of inflation and interest rate increases in BC and beyond.

“Amid the high cost of living, households are facing a variety of financial pressures, leaving little room in their budgets,” said Linda Paul, an insolvency trustee at MNP Canada in a statement.

“The rising burden of household expenses and food prices has exacerbated the financial worries of British Columbians. That’s compounded by high debt servicing costs, especially for those with more debt.

The percentage of people who reported being within $200 unable to pay their bills jumped to 52, up eight points from the previous quarter – the biggest increase of all provinces.

This increase comes as the average British Columbian, according to MNP, is shelling out $206 more per month on necessities compared to last year.

“While households are trying to control expenses and spend more carefully, others have exhausted all possibilities to cut. They’ve traded in the cheapest items at the grocery store and cut down on their entertainment spending. Despite these measures, they still struggle with necessities like putting food on the table or paying their mortgage or rent,” Paul wrote in a media release.

“That leaves individuals with difficult choices about which bills to prioritize and which they should postpone or abandon.”

Perhaps unsurprisingly, 49 percent of people surveyed said they regret taking on debt and are worried about paying it back. This also represents an increase in the form of the previous quarter.

When it comes to the impact of interest rates, 68 percent said they felt the impact of higher rates and 60 percent said the increase made them more worried about paying their debts. .

Nationwide, MNP found that the percentage of people who reported not being able to meet all of their financial obligations rose to 35 percent – ​​the highest recorded in the five years the index has been in existence.