Survey: 28% Of Canadians Say Interest Rate Hike Will Push Them Into Bankruptcy

Twenty-eight per cent of Canadians surveyed say that another interest rate hike by the Bank of Canada could push them into bankruptcy, according to a newly released poll by MNP.

The poll comes just days before an anticipated interest rate hike by the Bank of Canada and was conducted on behalf of MNP, a leading Canadian bankruptcy firm, between June 15 and June 19. The same poll found that 42% of Canadians say that if interest rates rise much more their financial well-being will be put in jeopardy.

The Bank of Canada has raised interest rates three times since last summer, and investors expect the central bank will boost its target for the overnight rate to 1.5% this Wednesday (July 11).

Canadians have been warned that the cost of borrowing is bound to rise with higher interest rates. The MNP survey suggests some people are paying attention, with 61% of respondents saying they believe their debt situation has improved in recent months. But there's still a significant number of Canadians who are struggling under the weight of debt. Twenty-seven per cent of respondents to the survey said they have no wiggle room after covering their monthly expenses; while 44% said they're within $200 of insolvency each and every month.