Half of British Columbians are just $200 away from being broke

We're teetering.

48% of British Columbians said they were just $200 or less away from financial insolvency in the first three months of this year.

That's up 2% from last year -- an indication that people's money problems are burgeoning, not bettering, as we face stagnant or dwindling paycheques an uncertain future with Trump tariffs and higher costs for almost everything from housing and utilities to groceries and transportation.

There are a lot of alarming facts and figures in the latest MNP Consumer Debt Index.

But, the $200 or less away from financial collapse is the most shocking.

What that means is almost half the people in the province are spending virtually everything they make on paying their bills and meeting their debt obligations every month.

30% of British Columbians told the Ipsos survey MNP commissioned that they are already insolvent.

That means they spend more than they make every month.

Every month they sink further in debt in order to pay bills and meet their mounting debt obligations.

"Three in 10 report having zero wiggle room, flexibility or financial cushion," said MNP licensed insolvency trustee Linda Paul.

"Without that buffer, many may be vulnerable as an increase to living or housing costs -- or an unexpected loss of income -- could lead to serious financial hardship."

Once people get into that bind they may have to seek the professional help of a licensed insolvency trustee like Fraser Valley-based Linda Paul or Kelowna-based Jeane Herman.

Such trustees can help people understand their debt-relief options from debt consolidation and consumer proposals to declaring bankruptcy.

39% of British Columbians are bracing for increased housing costs, an added strain some may not be able to handle.

"With many in the province set to renew their mortgages at higher interest rates -- and others facing possible rent hikes as a result -- the financial burden for already stretched households may grow further," said Paul.

"These rising housing costs -- alongside ongoing economic uncertainty -- represent the kind of financial strain that those already living close to the margin are in no position to absorb."

The survey also found:

- 74% have already cut back on spending due to economic uncertainty

- 75% are delaying any major purchases or investments like a home, car, big electronics, RRSP contributions

- 79% are more cautious about taking on new debt

- 58% have heightened concern about their ability to pay off debt

- 32% are worried someone in their household could lose their job in the next year

- 58% feel they can continue to cover living expenses over the next year without needing more credit

- 40% regret the amount of debt they have taken on

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