Low Interest Rates Boost Canadian Credit Spending
The numbers are in – and Canadians are on a credit spending binge. With the Bank of Canada holding interest rates steady at 0.5 per cent, Canadian consumers feel confident with increased spending despite the fact that the national economy continues to struggle and the cost of living continues to rise. In fact, a new poll conducted by Ipsos on behalf of MNP Ltd. shows one in three respondents admit they have taken on more debt due the cheap cost of credit with interest rates sitting so low. A question Canadian households should be asking themselves however, is how they would be impacted if interest rates started to rise? MNP Ltd.’s President, Grant Bazian warns an increase in interest rates, could push more than 30 per cent of respondents to the survey towards insolvency and potentially even bankruptcy. An original article discussing the Ispos survey conducted on behalf of MNP regarding Canadian consumer debt were posted online withYahoo News on April 11, 2017. Grant Bazian, CIRP, LIT is President of MNP Ltd. based out of our Vancouver location. To learn more about how MNP Debt can help, contact our local office at 604.685.8408.
