According to a recent report by an insolvency firm, many Canadians are still facing financial strain despite a decrease in debt concerns. The report, released on Tuesday, highlights the ongoing struggle for many individuals and families in the country.
The insolvency firm, MNP Ltd., conducted a survey in December 2020 and found that 49% of Canadians were $200 or less away from not being able to pay their bills and debt obligations. This number has slightly decreased from 53% in September 2020. However, it is still a concerning figure, especially considering the ongoing economic impact of the COVID-19 pandemic.
The survey also revealed that 35% of Canadians are unable to cover their monthly expenses and debt payments, a slight decrease from 38% in September. This indicates that while some Canadians may have seen a slight improvement in their financial situation, many are still struggling to make ends meet.
The report also highlighted the impact of the pandemic on Canadians’ ability to save money. It found that 44% of Canadians have no emergency savings, while 31% have less than $1,000 set aside for unexpected expenses. This lack of financial cushion can leave individuals and families vulnerable to financial difficulties in the event of job loss or other unforeseen circumstances.
Grant Bazian, president of MNP Ltd., stated that the decrease in debt worries is likely due to government support programs and payment deferrals offered by financial institutions. However, he also warned that these measures are temporary and may not be enough to sustain individuals and families in the long term.
The report also highlighted the impact of the pandemic on mental health, with 40% of Canadians reporting that their financial situation has negatively affected their mental well-being. This further emphasizes the need for continued support and resources for those facing financial strain.
In conclusion, while there has been a slight decrease in debt concerns among Canadians, the report by MNP Ltd. highlights the ongoing financial strain faced by many individuals and families in the country. It is crucial for the government and financial institutions to continue providing support and resources to help Canadians navigate these challenging times.
