Record Canadian Insolvency as Interest Rate Hikes Loom

Canadian insolvency has hit a record high, with a third of respondents in an Ipsos survey unable to cover their bills and debt payments, revealing financial strain ahead of the Bank of Canada's expected interest rate increase. The Bank has progressively hiked rates from 0.25% to 4.75%, resulting in a heavy burden on Canadians, especially for those heavily indebted. Despite the central bank's pauses, Canadians' financial anxiety continues to heighten due to increasing household bills, food prices, and debt-servicing costs. More than half of the Canadians interviewed are only $200 away from not being able to meet their financial obligations. Despite efforts to reduce spending, households are struggling with essential financial obligations, with even households earning $100,000 or more per year reporting increased weekly spending on essentials. More details: https://financialpost.com/news/canadians-reporting-insolvency-hits-record-poll