“Many people are feeling better about paying their debt,”: MNP Insolvency Trustee

Roughly three in five BC residents are concerned about being in financial trouble if further rate hikes occur in the future.

That’s according to a poll conducted by Ipsos on behalf of MNP.

In addition, nearly half of the people polled are concerned about being driven toward bankruptcy.

Dean Prentice who is a Licensed Insolvency Trustee at MNP in Prince George told Vista Radio that while some are facing a bleak debt outlook, it’s not all doom and gloom.

“Many British Columbians are feeling better about their ability to pay their debt, about 57%, and about two in five either regret or are concerned about the amount of debt they and that has certainly been adjusted by the higher interest rate. Regret has declined this quarter.”

As a result, homeowners are being forced to cut costs with mortgage rates staying where they are.

“People have looked at their mortgage interest rates and they have realized they are not going down in the near future and I think people have actually started to make changes to their spending now whereas before they were hoping the rates would drop,” added Prentice.

While residents remain concerned about their debt levels, for many, it’s not at a dire point just yet.

“What I find very fascinating is that the mortgage default rate is at historic lows. In fact, in BC, the rate hasn’t been lower in 20 years. So, people aren’t defaulting on their mortgages and I think it is very encouraging.”

The average amount of money that BC residents say they have left over at the end of the month dropped this quarter to $681, down 166 bucks from the previous one.

Fewer people in the province (46% -6pts) this quarter report they are $200 away from not being able to meet all of their obligations and slightly fewer say (31% -1 point) say they don’t make enough to cover their bills or debt payments.