British Columbians have concerns over being able to cover their debt as holiday bills begin to come in and an interest rate hike takes effect.
A study done by the MNP Consumer Debt Index shows 51 per cent of people living in BC are unable to cover living expenses without added debt.
Debt Consultant Ilya Margulis says most people take out more loans to pay their bills, making the situation worse.
“In some cases it might be better interest rate then the original debt was, in other cases it might not be. People have tried to re-mortgage their home in order to pick up some of their other debt and finding out they’re no longer to make those payments either.”
On Wednesday the Bank of Canada raised it’s key interest rate to 1.25 per cent and 48 per cent of British Columbians are worried about the impact it’ll have on them.
Research also indicated that 33 per cent of Canadians admit they’re concerned they may go into bankruptcy because of the rate hike
Even though British Columbians are worried about paying of their loans, only 39 per cent regret the amount of debt they’ve taken on.
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