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Canadians’ optimism about their finances has rebounded from a record low in the early days of the COVID-19 pandemic, as government support and lower household spending take some pressure off, a new poll finds.
The latest MNP Consumer debt Index, which measures attitudes toward debt and vulnerability to insolvency, found Canadians are feeling more confident than ever about covering their bills for the next 12 months without going further into debt.
After reaching a record low in early March at the start of the pandemic, the index has climbed three points to 96.
Compared to pre-pandemic levels, significantly more Canadians (43 per cent) rate their current debt situation as excellent.
Forty per cent said they are less concerned about their debt and 27% believe their debt is better now than it was a year ago.
On average, respondents said they had $148 more left over at the end of the month than they did in early March
“The fact that many Canadians are more optimistic or even hopeful about their personal debt situation is likely a result of the pandemic relief measures. But it could also be the result of Canadians comparing their own circumstances to what is playing out in other parts of the world,” says Grant Bazian, president of insolvency accountancy firm MNP LTD. “What’s more is that many found it easier to spend less over the last few months since they were required to stay home.”
