The MNP Consumer Credit Index recorded a reading of 88, the lowest since the index was launched in June 2017.
45 percent of respondents said they do not believe they can cover their living expenses this year – up 5 points from the fourth quarter of 2021 – while 43% are concerned about their current debt level (up 5 points).
“Almost two years into the pandemic, financial confidence among Canadians has plummeted to record lows, with household debt becoming increasingly worrying,” said MNP President Grant Bazian. “Canadian financial optimism generally subsides due to holiday bills, but this year than any other, Canadians are feeling more financially insecure, possibly as a result of the Omicron version, and the resulting pandemic fatigue, rising With inflation, and interest rates are likely to go up this year.”
When asked about their ability to deal with an unexpected event without increasing their debt burden, only 27% believed they could.
For example, a third of respondents worry about job losses or dealing with changes in pay or seasonal work, a three-point jump from September; And an equal part is not convinced to manage financially with an illness that leaves them unable to work for three months.