Canada was relatively sheltered in the 2008 recession thanks to higher home equity and lower household debt heading into the downturn. Not this cycle. And unlike the quick central bank induced bounce back in 2009, the current quagmire is likely to persist longer.
The latest MNP Consumer Debt Index published Monday shows 50 per cent of respondents said they’re within $200 of not being able to cover their monthly bills, and nearly an equal proportion of participants in the survey (49 per cent) said they aren’t confident in their ability to cover expenses without going deeper into debt.
“Our findings may point to a shift among some Canadians from debt apathy to debt hopelessness. Feelings of hopelessness can make people feel like giving up on ever paying down their debt or, worse, ignoring the debt as it piles up higher,” said MNP President Grant Bazian in a release. Here is a direct video link.
Consumer credit strain is compounding in China as well, see: China’s middle class frets the ‘good times’ are over, amid sliding house prices, stagnant wages.
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