31% of Canadians don't earn enough to pay their bills: Survey

A new survey suggests almost one-third of Canadians aren't pulling in enough income to cover basic monthly expenses.

A new survey suggests almost one-third of Canadians aren't pulling in enough income to cover basic monthly expenses.

Thirty-one per cent of respondents to an Ipsos survey conducted for MNP said they don't earn enough to pay their bills and debt payments, and almost half of all respondents (49 per cent) said they are within $200 of insolvency.

“It's a bit unnerving. It almost seems unrealistic. But this is what the survey continues to tell us, that people are concerned and that they're $200 away from not making their financial obligations,” said Grant Bazian, president of MNP Ltd., in an interview.

Two thousand Canadian adults were surveyed by Ipsos from March 9-15 — about one week after the Bank of Canada raised its main policy rate for the first time since 2018. The central bank ramped up its efforts to rein in inflation last week when it delivered its first half-point hike since 2000, and also announced it would start allowing its balance sheet to shrink later this month.

The survey for MNP demonstrates the extent to which some Canadians were being squeezed prior to last week's supersized hike.

A little more than half of respondents (52 per cent) said in March they were already feeling the effects of higher rates, according to the release from MNP on Monday.