A new report highlights rising financial insecurities among Albertans. (Photo: Dreammediapeel | Dreamstime.com)

By David Opinko

47% of Albertans $200 or less away from bankruptcy; report

Jul 16, 2025 | 10:09 AM

Nearly half of Albertans say there is a short distance between themselves and financial insolvency.

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

About 47 per cent of Albertans who were surveyed between June 9-13, 2025, say they are $200 or less away from bankruptcy each month, which is more than any other province.

Thirty per cent say they are already financially insolvent, and 38 per cent report living paycheque to paycheque.

Lindsay Burchill, a Licensed Insolvency Trustee with MNP, says it is a bad sign for the economy when as many as 1.8 million Albertans have little ability to absorb unexpected expenses or income disruptions.

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“Albertans have not witnessed this kind of economic uncertainty since the COVID-19 pandemic. Many households are feeling anxious and stuck in a financial holding pattern — delaying major life or financial decisions as they try to navigate persistent economic pressures against a volatile global backdrop,” says Burchill.

The Bank of Canada has reduced its key policy interest rate from five per cent in May 2024 to 2.75 per cent in March 2025, where it remains today. Despite rates falling by nearly half over the last year, 43 per cent of Albertans told MNP they fear rising interest rates could drive them towards bankruptcy.

“Persistent fears linger around interest rates,” says Burchill. “For some households, the damage is already done after years of rising costs, high interest rates, and depleted savings. There may be some deep worries that more hardship could still be on the horizon.”

It is not all bad news, however, as the report reveals that the amount of money the average household has left over at the end of each month increased over the last quarter by $101 to $951.

Approximately three-in-10 Albertans expect their debt situation to improve over the next year, while 40 per cent believe that will happen within the next five years.

Burchill urges anyone who is worried about their financial situation to speak with a financial advisor or licensed insolvency trustee.