A new report suggests that many Albertans are struggling to make ends meet and repay their debts. (Photo: Dreammediapeel | Dreamstime.com)

By David Opinko

71% of Albertans concerned about ability to repay debts: report

Jan 8, 2024 | 8:54 AM

LETHBRIDGE, AB – It should come as no surprise at this point, but many Albertans say they are struggling to make ends meet.

That is according to the latest Consumer Debt Index report from MNP.

Half of Albertans surveyed said they are concerned about their level of debt and 71 per cent are worried about their ability to repay those debts.

Those who live in the province were more likely than Canadians elsewhere in the country to have only made the minimum payments on their credit cards.

MNP Licensed Insolvency Trustee Donna Carson said these are concerning trends, not only in Alberta, but across Canada.

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“Credit spending has been a lifeline for many Albertans grappling with rising costs. The data shows how the burden of repaying that debt is compounding the financial pressure on many households, especially amid higher interest rates,” said Carson. “Most necessities cost more, and the cost of repaying debt has increased. This fosters a growing sense of concern about debt repayment and managing day-to-day expenses.”

Just over one-fifth of survey respondents have had to take money out of their savings, home equity, RSP, or use an alternate method to pay their debts or day-to-day expenses over the last year.

Carson adds, “The culmination of holiday bills, impending mortgage renewals, and ongoing expense hikes paints a concerning picture. Many Albertans might be nearing a critical juncture, grappling with both financial and mental strain.”

However, the perception Albertans have of their debt situation is improving.

The percentage of people who believed that their debts were getting worse was 21 per cent, down three per cent from MNP’s last quarterly survey. Conversely, 24 per cent rated their debt situation as getting better, an increase of four per cent from one year ago.

MNP said that those who are seriously concerned about their debt should consider speaking to a licensed insolvency trustee to get advice, understand their rights, and determine the best path forward.

The survey was conducted by Ipsos on behalf of MNP. A sample of 2,000 Canadians were surveyed between November 28 and December 4, 2023.

The full Consumer Debt Index report can be found on MNP’s website.

READ MORE: Lethbridge News Now

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