What is 'financial whiplash' and why do so many British Columbians have it?

Whiplash is an apt term for the jarring and disorienting financial state of many British Columbians.

In fact, the latest Consumer Debt Index done by pollster Ipsos for accounting and consulting firm MNP uses 'financial whiplash' to describe our reaction to shocking global headlines and the money pinch at home.

The index found 70% of British Columbians have strained finances because of the skyrocketing cost of essentials like food and gas.

52% feel destabilized by scary world headlines and the resulting financial turmoil.

37% are within $200 a month of not being able to meet financial obligations.

And, another 24% already don't earn enough to cover their monthly bills and debt repayments -- so they go farther into debt.

This goes beyond living paycheque to paycheque to living in an ever-increasing quicksand of debt.

Many households are having to cut back in an effort to make ends meet -- buying cheaper and less food, reducing car trips to save gas, turning down the heat, not eating out, trimming cell and streaming services and putting off purchases on everything from clothes and shoes to a car, appliances and a house.

56% of British Columbians say they are working harder, but getting no farther ahead.

63% are delaying major financial decisions because of all this unpredictability.

“That sense of ‘financial whiplash’ can make it difficult to feel stable or in control, especially when high everyday costs and broader economic uncertainty are largely outside of what an individual can control, said MNP licensed insolvency trustee Linda Paul.

"Over time, this can make it harder to manage unexpected expenses or move forward with larger financial decisions. Across BC, many households are adjusting to conditions that continue to change, often faster than they can plan for."

With tax filing season here, 10% of British Columbians expect to owe money they can't pay.

“Tax season can be a revealing moment for household finances,” said Paul.

“While some British Columbians may use a refund to catch up or reduce debt, others may find themselves needing to draw on savings or take on additional credit to meet their tax obligations, which can add to financial strain over time."

Paul recommends people seek professional, non-judgemental help before their financials get too out of control at MNPdebt.ca