Ten percent of British Columbians expect to owe taxes they are unable to pay: MNP

Over half of British Columbians (52%) say they are experiencing ‘financial whiplash’ as changing conditions repeatedly disrupt their financial plans, while seven in 10 (70%) say rising prices for food and gas are straining their finances.

That’s from the latest Consumer Debt Index from MNP.

PG-based Licensed Insolvency Trustee, Leah Drewcock says with the tax season and other costs due, many residents are feeling the pinch.

“A lot of individuals have their mortgages coming up for renewal this year too so there is a lot of concern amongst British Columbian’s and how they are going to manage these high costs and interest rate changes.”

“It can be rather stressful. If you haven’t planned for these things you can get that sense of financial whiplash where you thought things were going well and now you are feeling unstable again.”

One in 10 British Columbians (10%) say they expect to owe taxes they are unable to pay. This includes seven percent who will delay paying, as they need more time to figure out how they will come up with the funds, while three percent say they will need to borrow or go into debt to meet their obligations.

Ahead of the Bank of Canada’s next interest rate announcement set for April 29th, two in five British Columbians (41%) say they fear financial trouble if rates rise.

Financial pressures remain uneven as many households still face limited flexibility

The average amount British Columbians have left at month-end has risen to an all-time high of $1,245, the highest among the provinces, up from $1,025 last quarter, suggesting a meaningful improvement for some households in overall financial flexibility, particularly as they continue to adjust to higher costs and changing financial conditions.

However, the gains are not being felt equally across all households. While fewer British Columbians this quarter say they are within $200 or less of not being able to meet their monthly financial obligations, more than one-third (37%, -8 pts) still report being in this position, while one-quarter (24%, -2 pts) say they already do not earn enough to cover their bills and debt payments.