The coronavirus economic fallout has not only destroyed financial markets and government budgets, but COVID-19 is also impacting millions of households all over the world.
Canada is no exception.
According to the MNP Consumer Debt Index study, nearly half (49 percent) of Canadians say they are on the brink of insolvency due to the virus outbreak.
Researchers found that half say they are $200 or less away from being unable to pay their monthly bills, including debt obligations. More than one-third admit they are worried about job security.
“Our results underscore how vulnerable Canadian households are to income interruption. Over the next few months we’ll likely see an unfolding of two crises: the global pandemic and the bursting of the Canadian consumer debt bubble,” said MNP President Grant Bazian in a press release.
The government is sending Canadians impacted by the pandemic $2,000 a month, plus increases to a myriad of other monthly benefits (GST and the Canada Childcare Benefit, for instance). Provinces are also giving breaks to households in the form of cash payments.
A new report suggests that Prime Minister Justin Trudeau and his Liberal government are hoping for a best-case scenario that everything will return to normal by July at the earliest.
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