52% of people in B.C. are within $200 of not being able to pay their bills: survey

A representative with the Bank of Canada displays the new polymer $5 and $10 bank notes alongside the $20, $50, and $100 during a press conference at the Bank of Canada in Ottawa on Tuesday, April 30, 2013. THE CANADIAN PRESS/Sean Kilpatrick

More than half of British Columbians say they are within $200 of not being able to make ends meet each month, according to new data.

Bankruptcy firm MNP Ltd. released its latest Consumer Debt Index this week, and it sheds some light on the impacts of inflation and rising interest rates in B.C. and beyond.

“Amid the high cost of living, households are facing a range of financial pressures, leaving minimal wiggle room within their budgets," Linda Paul, an insolvency trustee with MNP Ltd. said in a statement."

“The mounting weight of household expenses and food prices has caused British Columbians’ financial anxiety to intensify. That’s further compounded by elevated debt-servicing costs, especially for those who are heavily indebted.”

The percentage of people who reported being within $200 of not being able to pay their bills has jumped to 52, up eight points from last quarter – the largest increase among all provinces.

This increase comes as the average British Columbian, according to MNP, is shelling out $206 more per month on essentials when compared to last year.

“While households are trying to curtail discretionary expenses and spend more cautiously, some have exhausted all possibilities of cutting back. They’ve already swapped to the cheapest grocery store items and cut down on their entertainment costs. Despite these measures, they’re still struggling with the essentials like putting food on the table or paying their mortgage or rent,” Paul wrote in the media release.

“That leaves individuals with difficult choices around which bills to prioritize and which they may have to postpone or forgo.”

Perhaps unsurprisingly, 49 per cent of people surveyed say they regret taking on debt and worry about repaying it. This also represents an increase form last quarter.

When it comes to the impact of interest rates, 68 per cent say they are feeling the impact of higher rates and 60 per cent say the increase has made them more concerned about paying their debts.

Nationwide, MNP found the percentage of people who reported being unable to meet all of their financial obligations rose to 35 per cent – the highest that has been recorded in the five years the index has existed.