Alberta leads country in people reporting financial stress, cautious spending

Alberta leads Canada in residents feeling overwhelmed by their financial situation. An estimated 1.8 million residents say they're close to insolvency.

Residents of Alberta are more likely than those of any other province to report feeling stressed about their finances, according to a new report.

The latest MNP Consumer Debt Index shows 41 per cent of Albertans polled say they feel anxious about their financial situation.

“It’s not always low income; it’s not always people who have spent too much or (have a) frivolous lifestyle. We’ve certainly seen a lot more people who’ve been trying to keep their businesses going,” said Sandra Landry, licensed insolvency trustee with MNP in Edmonton.

“It’s devastating, stress. It’s tough. Life is tough,” said William Gob, a seasonal seismic worker who hasn’t found work over the summer in Calgary.

The report shows two in five Albertans are concerned rising interest rates could drive them toward bankruptcy.

That same amount are also feeling more cautious with how they manage their money due to current financial pressures.

Alberta tops the list in this category.

Nearly half of Albertans (47 per cent) say they are $200 or less away from financial insolvency, which is up slightly from the last report.

“Whether it’s a flood or a fire or a change in the economy, there’s always something that seems to be happening here in Alberta,” said Landry.

Even if interest rates go down, many Albertans (46 per cent) remain concerned about their ability to repay debt.

The Bank of Canada’s next interest rate announcement is expected on July 30.

This survey was conducted by Ipsos and included interviews with 2,003 Canadian adults conducted between June 9 and June 13.

The results are accurate to within +2.5 percentage points 19 times out of 20.

Calgary non-profit Momentum says it has worked with thousands of people to change their financial situation.

“You’re not alone, and you’re not necessarily doing things wrong. So, a lot of things you may be experiencing on a systemic level, and even though that may seem overwhelming, there are things you can do,” said Momentum’s Carolyn Davis.

Momentum hosts free money management workshops every Monday night, offering advice and providing a community of support for the growing number of people feeling the financial pinch.

“I have to do more hours to be able to afford my bills. I’m not talking luxury; luxury doesn’t exist in here. For me in Calgary right now, if you pay your rent, your phone and everything, you’re the hero of heroes,” said Amine Ennaceri, a construction worker in Calgary.