Inflation’s well in-hand. So why do so many Canadians still feel ‘a squeeze’?
News that inflation dropped to a more than three-year low in September has not changed the financial picture for many Canadians who continue to struggle with a permanently higher cost of living.
Growing optimism about the improving economic outlook for some comes as others report the need for ongoing sacrifices and a continual stress about making ends meet, according to new polling released Wednesday.
The latest MNP Consumer Debt Index, based on Ipsos polling from September, reported that nearly a third of respondents (30 per cent) are turning to “bill-splitting” behaviours — spreading out costs with others — in the current cost-of-living crunch. That could refer to carpooling, buying in bulk with a group, sharing subscriptions and living with other people.
Those who are cohabitating or splitting bills were more likely to report being close to insolvency, according to MNP.
Wes Cowan, licensed insolvency trustee with MNP, tells Global News that he’s seen a “significant increase” in the number of people reaching out for help managing their personal finances in the past six or nine months.
“For the last couple of years or so, we’ve been under greater financial stress with high inflation, higher interest rates,” Cowan says. “People are adapting. I think Canadians are resilient … but there is definitely a squeeze on our budgets.”
Overall, the Consumer Debt Index improved by four points from the previous quarter, suggesting that, in aggregate, Canadians are feeling better about their finances.
Two in every five Canadian households (42 per cent) still say they’re less than $200 away from insolvency each month, according to the polling. Those are the lowest levels seen in the quarterly survey since September 2018.
Meanwhile,
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