A report from the insolvency firm MNP Ltd. has revealed that 52% of Canadians are $200 or less away from being unable to pay all of their bills at the end of the month.
The result of the July report shows a six-percentage-point increase from April's 46%.
Grant Bazian, the president of MNP, expressed that the increasing burden of household bills and food prices has intensified financial anxiety among Canadians, further compounded by rising debt servicing costs, particularly for those heavily indebted.
According to the report, 35% of respondents say they no longer earn enough to cover their bills and debt payments, up from 30% in April and a record for the survey. It also states that a record 48% of respondents are concerned about their current level of debt.
Household debt has been identified as a key risk to the economy by the Bank of Canada, which is scheduled to make its next interest rate decision on Wednesday.