Financial pressures are forcing B.C. residents to make some tough choices on what they can or can’t afford.
According to the latest MNP consumer debt index, 58 percent of people surveyed say at least half of their income is already committed to bills, debt repayment and regular expenses before the money arrives.
Leah Drewcock is a Prince George-based licensed insolvency trustee who told Vista Radio ‘lifestyle shrinkflation’ is a big problem.
“Now they are cutting back on things like personal enrichment experiences like personal care, clothing and sometimes children’s activities. It’s very concerning because we just came out of COVID and started to become social and now we are having to cut back on the things that make us feel connected.”
“Households need those monies and they can sort of keep up for a certain length of time but they are creating this rolling shortfall as each pay period is spent catching up from the last one. It leaves very little room for unexpected expenses and it deepens that gap before the next paycheque arrives.”
The report adds 43 percent of people are struggling to get ahead , the largest proportion among the provinces.
Three in 10 British Columbians say they are cancelling plans or activities or avoiding making them altogether due to financial pressures, while more than two in five say these pressures are hindering their financial progress, the largest proportion among the provinces.
In addition, British Columbians’ capacity to absorb further interest rate increases remains constrained, even as the Bank of Canada has held its key rate steady so far this year.
Similar shares feel better or worse about handling a one-percentage-point rate increase, but when framed as an additional $130 in monthly interest payments, fewer than one in five say they could manage the added cost, while two in five believe they could not.
Something going on in the Prince George area you think people should know about?
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