Half in B.C. say they need a raise to pay debt

Half of British Columbians say they’ll need a big pay raise to live debt-free.

According to a new Ipsos survey, 50 per cent of British Columbians with consumer debt say they’ll need a “significant increase in their household income” before they can pay off all debt. On average, respondents felt they’d need a 35-per-cent boost in pay to live debt-free.

“It used to be that people would save for big purchases and have some money tucked away for emergencies,” said Grant Bazian, president of Canadian insolvency firm MNP Ltd, which commissioned the survey. “Now Canadians look straight to HELOCs (home equity line of credit) or credit cards or other forms of debt when it comes to paying for unexpected car repairs, home maintenance, and even basic household expenses.”

Of those with non-mortgage debt, about 45 per cent own up and blame themselves for their financial predicament. About 18 per cent blame others, while 12 per cent blame their spouses and seven per cent blame government taxation.

People who are struggling financially or who qualify for bankruptcy said they would need a 49-percent increase in household income to get their finances in order and clear their debts. Bazian also noted that being approved for a loan isn’t necessarily a good thing.

“Taking on more credit may seem like the fastest, easiest solution, but it is not always the most appropriate,” he said.

The survey was conducted online between March 12 to 16 by Ipsos for MNP Ltd. It covered a sample of 2,001 Canadians from an Ipsos panel, with results accurate to within +/- 2.5 percentage points, 19 times out of 20.