It’s been roughly 20 months since borrowing costs were slashed drastically at the onset of the COVID-19 pandemic, but a newly released poll is providing fresh evidence that Canadians are still binging on cheap money.
According to the latest MNP Consumer Debt Index, 58 per cent of Canadians are likely to take on more consumer debt before the end of the year. And the insolvency firm is concerned about the “riskier ways” consumers may pile it on.
Among survey respondents who intend to increase their debt load, 37 per cent said their credit card is already carrying a balance. Twenty-two per cent are planning to use Buy Now Pay Later options, which, according to MNP, have increased in popularity during the pandemic. Another 22 per cent of respondents are looking at purchase finance options. Fifteen per cent said they are likely to apply for a new credit card, while nine per cent said they are considering a pay day loan…read more.