Sky-high inflation and rising interest rates are creating financial challenges for Canadians with 24 percent reporting they could not come up with $500 in cash tomorrow without borrowing or selling something, according to a new study.
This is an indicator that “many Canadians continue to struggle with cash flow,” said the study by the Chartered Professional Accountants (CPA) of Canada, released on Aug. 29. CPA conducted a survey to gauge how Canadians perceive their financial situation ahead of the Bank of Canada’s latest interest rate announcement on Sept. 6.
Nearly half of those surveyed (46 percent) have debt other than a mortgage. Over half (57 percent) of Canadians with non-mortgage debt have carried over a credit card balance in the last two years. Almost half of Canadians (48 percent) with non-mortgage debt say paying off what they owe is stressful.