Nearly half of British Columbians $200 away from not being able to pay bills, survey finds

British Columbians faced escalating affordability challenges in 2024, particularly with personal debt and housing, according to two new reports. 

The MNP consumer debt index, conducted by Ipsos, found almost half — 49 per cent — of British Columbians do not think they'll be able to cover expenses over the next 12 months without going further into debt. 

Nadine Hoskin noticed a large jump in prices over the past year. She says she was hospitalized for the first six months of 2024 and was shocked at the grocery prices she saw when she was released. 

"It's not like things have gone up two or three per cent. Its things have gone up 10, 20, 30 per cent," said Hoskin. "Shocking. Absolutely shocking." 

She says she tries to do her shopping at discount or thrift stores to lower expenses.

"I'm always looking to save money, and nowadays even more so." 

Ipsos found that 46 per cent of those surveyed are just $200 away from not being able to pay their bills and debt payments, and nearly one-third are already unable to pay them.

And 18 per cent of British Columbians surveyed expected their debt situation to worsen one year from now. 

It says that compared to last quarter, British Columbians, on average, have $97 less left over at the end of the month this quarter. 

The consumer debt index is conducted four times each year and includes just over 2,000 adults across the country. It's accurate within plus or minus 2.5 percentage points 19 times out of 20.

Charles Nowakowski says grocery costs and unexpected car and home repairs have hit him the hardest. 

"I see prices escalating through the roof for no reason," he said. 

Rising housing costs are a major concern for many British Columbians, according to a survey Vancity conducted of its members.

The credit union found 40 per cent of respondents in the spring of 2024 cited housing costs as a financial concern. 

Those surveyed had mortgage payments increasing at a much higher rate than incomes. The survey found that between 2018 and 2024, while the average household income increased by 27 per cent, monthly mortgage payments increased by almost 53 per cent.

Twenty-one per cent of those surveyed who were renters said they could not cover an unexpected expense of $5,000. 

'Budgeting is key'

Linda Paul, a licensed insolvency trustee with MNP, says it's important to have a plan. 

"Budgeting is key," said Paul. "A lot of people that I talk to don't really know where their money goes every month." 

In addition to creating a budget, she says monitoring and revising it is also important to ensure it is being stuck to and realistic.

But B.C. Seniors Advocate Dan Levitt says no amount of budgeting can help some seniors cope with the rising cost of living. He says affordability issues in the province are hitting seniors particularly hard, forcing hard choices for some. 

"You might make a choice to have home care or not have home care because you want to make sure you can afford medication or afford other things, even like rent," he said. 

Levitt says making ends meet is a challenge for many seniors in the province, who often have an income that is not tied to inflation. 

"Seniors are on fixed income. They're not able to go out and get an extra job or extra income," he said.