Belt-tightening continues as households feeling squeeze

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Canadians have tightened their collective belts another notch as they continue to be strained financially.

One recent survey noted the economic confidence and personal financial outlook of Canadians has gotten worse, while another poll found nearly one-third were concerned about their economic future as high inflation and interest rate hikes wreak havoc on people’s pocketbooks.

According to the Canadian Maru Household Outlook Index for November, 10% of people say their personal financial position was better off this month compared to 11% last month, fewer have intentions to buy a house — down to 11% from 12% the previous month — and 37% continue to struggle to make ends meet.

This has resulted in a negative/pessimistic score of 83, the worst since the index commenced in April 2021.

The pollster asks respondents on a monthly basis about the current state of the economy and their personal financial position, along with their 60-day fiscal outlook.

Other findings include 15% of Canadians say they will likely default on making payments on major loans or a mortgage, down from 18% last month.

Also, half of Canadians — up from 45% in October — said they will likely put money away for their retirement.

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Meanwhile, a Leger poll commissioned by RATESDOTCA has found 31% of Canadians were concerned about their economic future while 35% of homeowners were concerned about paying their mortgage over the next three years.

People concerned about their economic future said they won’t have enough money to live comfortably or take care of themselves or their family.

Half of homeowners surveyed said they can afford $500 or less in additional monthly costs, while only 16% can afford an extra expense in the range of $500 to $1,000, while 13% can afford an expense of more than $1,000.

Nearly 60% of homeowners said they are not concerned about their ability to pay their mortgage over the next three years.

In addition, 11% of homeowners are unable to cover their monthly expenses and are either dipping into savings or using credit cards to get by.