Many Canadians believe 2016 will be a good year for them financially, according to a BDO Canada Limited poll. But just over half of respondents think interest rates will rise this year, and if rates do rise, many will have difficulty dealing with increased monthly debt payments.
Key findings:
• 49% of respondents believe overall debt levels will be better by end of 2016 (13% much / 35% somewhat), with 11% (2% much / 9% somewhat) expecting them to be worse and 40% forecasting no change.
• 44% expect their net worth will be better by end of 2016 (10% much/33% somewhat), while 13% expect it to be worse (3% much/10% somewhat) and 43% expect no change.
• 51% expect an increase in interest rates in 2016 (6% a lot/45% a little), 10% expect a decrease in rates (1% a lot/ 9% a little) and 39% expect them to remain steady.
• Many life events would pose a challenge to their financial stability including: long-term injury or illness (70%), personal or family member job loss (63%), retirement (53%), separation / divorce (46%) and paying for post-secondary education (44%).
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