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By rdnewsNOW Staff

"A BILL-SPLITTING BOOM"

Albertans resorting to bill-splitting to make ends meet, MNP survey reports

Oct 17, 2024 | 4:26 PM

According to the latest MNP Consumer Debt Index, 37 per cent of Albertans report that they’ve turned to bill-splitting strategies in an effort to make ends meet and save money.

About one in ten, or 13 per cent, indicated they are saving by cohabiting with friends, partners, family members, or by seeking out roommates or co-living spaces. At 35 per cent, Albertans and British Columbians were also the most likely to report eating less to save money.

“A bill-splitting boom is emerging across the country, and Albertans are actively adopting these strategies as they adjust to the high cost of living. Methods like sharing expenses and co-living highlight Albertans’ adaptability, but also underscore the financial strain many are experiencing,” says Lindsay Burchill, a licensed insolvency trustee with Alberta-based MNP LTD. “Albertans are among the most likely to report cutting back on food just to get by, which is especially concerning. These strategies are a reflection of the difficult situation many are in as costs of living soar, pushing some to look for creative ways to save.”

At a rate of 58 per cent, Albertans are also the most likely to say they have tried to save money by grocery shopping strategically, or have stopped eating in restaurants or getting take out (52 per cent). Nearly half, 48 per cent, also report cutting back on impulse purchases.

In the third quarter, Albertans did report some bank account relief, with an average of $44 more being left over at the end of the month, bringing the total to $779. The number of residents reporting they are $200 or less away from financial insolvency has also improved, down three points to 44 per cent last quarter.

“Although cost-saving strategies and declining interest rates have improved how Albertans view their financial situation, a notable minority—44 per cent—still indicate they are teetering on the edge of insolvency, underscoring their ongoing financial struggles,” says Burchill. “However, with financial pressures beginning to ease, many individuals are discovering greater flexibility to tackle their debts and plan for a more secure financial future.”

Mindsets seem to have switched to the positive side with 27 per cent of Alberta residents looking positively to the future and expecting to see their debt situation improve within the coming year. Down to 14 per cent, fewer believe it will worsen, and one in five, or 19 per cent, report that they would be better equipped to mnage an interest rate increase of one per cent than they used to be, although across the provinces, this is the lowest proportion.

Although interest rates saw three cuts this year, 43 per cent of Albertans say that even if interest rates decline, they will be worried about their ability to pay their debts. More than half (52 per cent) say they would be in financial trouble if interest rates increase.

“Even with cooling inflation and declining interest rates, many Albertans are still bearing the weight of significant debt. There has been some relief, but the reality is that simply cutting costs alone may not be enough for those facing serious financial challenges,” explains Burchill. “For individuals looking for help to tackle their debts, consulting a licensed insolvency trustee is an essential first step to understanding their options. Bankruptcy is just one of the solutions that exist to address debt struggles.”

Licensed insolvency trustees provide unbiased advice on options including debt consolidation, debt management plans, budgeting, and consumer proposals as well as bankruptcies. They are the only federally regulated debt professionals who are authorized to administer government-regulated insolvency solutions such as bankruptcies and consumer proposals.

Overall, the survey found that Albertans intend to use the following strategies to save money in the coming year:

1. Bill Splitting – 30 per cent
2. Avoiding Impulse Purchases – 18 per cent
3. Reducing Utility Consumption – 18 per cent
4. Moving Somewhere More Affordable – 15 per cent
5. Creating a Budget / Recording All Expenses – 15 per cent
6. Negotiating Bills – 14 per cent
7. Grocery Shopping Strategically – 13 per cent
8. Splitting Grocery Costs / Buying in Bulk with Roommates, Friends, or Family – 13 per cent
9. Co-habitation – 12 per cent
10. Cancelling Subscriptions – 12 per cent
11. Stopping Eating in Restaurants or Getting Takeout – 12 per cent
12. Going Thrift Shopping – 10 per cent
13. Cutting Vices – 10 per cent
14. Finding Free or Low-Cost Entertainment – 8 per cent

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