{"id":27197,"date":"2017-10-24T16:50:05","date_gmt":"2017-10-24T21:50:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27197"},"modified":"2017-10-24T16:50:05","modified_gmt":"2017-10-24T21:50:05","slug":"4-in-10-canadians-can-not-cover-basic-expenses-without-going-deeper-in-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27197","title":{"rendered":"4 In 10 Canadians Can Not Cover Basic Expenses Without Going Deeper In Debt"},"content":{"rendered":"

4 In 10 Canadians Can Not Cover Basic Expenses Without Going Deeper In Debt<\/a><\/h3>\n
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Back on July 13, when the BOC hiked rates by 25bps to 0.75% – its first rate hike in 7 years – followed by another unexpected rate hike in September, we documented some troubling trends among Canadian households<\/a>, including the record household debt-to-income ratio…<\/p>\n

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… the sliding average hourly wages…<\/p>\n

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… as well as the unprecedented\u00a0 Canadian housing bubble which puts US home prices to shame…<\/p>\n

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… followed by a just as troubling observation <\/a>that Canadian reliance on housing has never been greater in the form of loans secured by property reaching an all time high…<\/p>\n

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… we warned that the combination of rising interest rates and Canada’s record reliance on debt, would be a dangerous combination.<\/p>\n

Our fears were confirmed three months later, when BNN reported <\/a>that a survey released yesterday found that almost half of Canadian households don\u2019t feel financially prepared for further interest rate increases. <\/strong><\/p>\n

According to the Ipsos poll, conducted on behalf of MNP, 40% of respondents said they fear ending up in financial trouble if rates go up much higher<\/strong>, with one-in-three already feeling the impact of higher rates.<\/strong><\/p>\n

\u201cIt\u2019s clear that people are nowhere near prepared for a higher rate environment,\u201d MNP President Grant Bazian said in a release. \u201cThe good news is that there seems to be at least the acknowledgement now that rates are going to climb which might make people reassess their spending habits \u2013 especially using credit.\u201d<\/strong><\/p>\n