A new report shows the majority of Albertans are struggling to make ends meet, October 19, 2023. (Photo: Monkeybusinessimages | Dreamstime.com)

By David Opinko

Over half of Albertans $200 away from being unable to pay their bills: report

Oct 19, 2023 | 7:44 AM

LETHBRIDGE, AB – A new report shows that a growing number of Albertans are struggling to make ends meet financially.

MNP has released its Consumer Debt Index for October 2023.

It states that Albertans were the most likely in Canada to say that their current debt situation is “much worse” than compared to one year ago. Approximately 24 per cent of survey respondents in Alberta gave this answer, about nine percent higher than in last year’s study.

Over half (56 per cent) reported that they are $200 away or less from not being able to meet their financial obligations, up five per cent in one year.

About one-third said they would struggle to manage a further interest rate increase.

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MNP Licensed Insolvency Trustee Donna Carson said there are a few major reasons for these findings.

“Growing concern over the potential for further interest rate hikes, in addition to the related increase in debt carrying costs and living expenses, has many more Albertans concerned about their current and future finances,” said Carson.

She added that higher levels of unemployment and underemployment are among the leading causes of insolvency.

“Increasing costs may be somewhat manageable when individuals remain fully employed but can quickly become burdensome with an unexpected loss of income, even after cutting back on non-essential spending,” she said. “That’s when people may start to rely on credit to meet basic household needs with the idea that they will be able to pay it off as soon as their circumstances improve.”

It was not all bad news in the report, however, as nearly 70 per cent said they feel marginally better about their ability to pay their debts, and the average amount of money that Albertans have leftover at the end of the month increased by $56 over the last quarter to $777.

Carson said the consequences of missed payments, compounding interest, repossession, or foreclosure can be swift and have long-lasting effects.

She recommends that those who anticipate missing payments first contact their lender to see if they can set up a payment plan and seek advice from a financial advisor or licensed insolvency trustee.

The full report Consumer Debt Index report can be accessed on the MNP website.

READ MORE: Lethbridge News Now

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