Impact of Personal Finance on Canadians: Even though rate hikes are slowing down, Canadians are still feeling the effects of inflation, both in their personal income and in their mental health. As more Canadians worry about their debt, those who have already been having a hard time with it are being pushed to the point where they feel stressed and anxious around other people.
Impact of Personal Finance on Canadians: Interest rates are increasing for a third of Canadians
Overall, 34% of Canadians say they are paying more each month for their debts than they were a year ago. Two in ten Canadians (17%) are making more than $200 in extra debt payments each month compared to a year ago. This number is higher for people making $60K or more a year and for people aged 35 to 54. Also, people who say they don’t fully understand how rising interest rates will affect their finances are 37% less likely to be in debt than people who say they do (29%).
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Many Canadians are feeling alone and worried about their mental health because of inflation
There seems to be a trend called “inflation isolation” in Canada, where 51% of people are staying home more often and 35% are spending less time with friends or interacting to save money. Twenty percent of Canadians (20%) and 19 percent of Canadians (19%) feel lonely because of this. Also, 42% of those surveyed said that the current state of the economy has made them feel more stressed and anxious (39%).
Younger Canadians and women are much more likely than their male peers to say that the current economy is making them feel more stressed and anxious. On the other hand, men are much more likely to say that inflation and interest rates have no effect on them at all. Canadians under 40 years old and making less than $40,000 a year are more likely to spend less time with friends and socializing, which makes them feel more alone and isolated.
Also, Canadians who said their personal debt was terrible are much more likely to feel more stressed (77%), anxious (72%), stay home more often (72%), and spend less time with friends and family (55%), all in order to save money, compared to those who said their personal debt was excellent. Trends are similar for Canadians who feel bad about how much debt they have, are worried about how rising interest rates will affect them, and are worried about how much debt they have right now.
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About the Research
These are some of the results of a study that Ipsos did for MNP LTD from September 5–8, 2023. About 2,000 Canadians ages 18 and up were asked to fill out this survey. After that, weighting was used to make sure that the sample’s make-up matched the make-up of the adult population based on Census data and to get results that were close to the sample universe.
A credibility gap is used to figure out how accurate Ipsos’s online polls are. The poll is correct 19 times out of 20, if all Canadian adults were asked. It would be correct within ±2.5 percentage points in this case. In some parts of the population, the credibility interval will be larger. Coverage and measurement errors can also occur in sample polls and surveys.
