Albertans are the most likely in Canada to say they feel financial stress, according to a new report.
According to the most recent MNP Consumer Debt Index, 41 per cent of Albertans surveyed indicate they are worried about their financial status.
"Nearly half of Albertans (47 per cent) report they are $200 or less away from financial insolvency each month — more than those in any other province," shared the Index.
About three in 10 Canadians say they feel stuck, with 29 per cent putting their lives on hold and 28 per cent constantly dealing with unexpected expenses.
“About 1.8 million Albertans say they are close to financial insolvency, based on the proportion surveyed, with little ability to absorb any unexpected expenses or income disruptions,” says Lindsay Burchill, a Licensed Insolvency Trustee with Alberta-based MNP LTD. “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.”
The report also shared that uncertainty and the cost of living are translating into day-to-day financial strain, with nearly two in five Albertans (38 per cent) reporting they feel stuck living paycheque to paycheque. Two in five Albertans (44 per cent) say they are feeling more cautious with how they manage their money due to current financial pressures, more than those in any other province.
“Those making cautious choices or putting off major decisions may still find themselves struggling to get by in this unpredictable financial climate, despite two interest rate pauses,” says Burchill. “Albertans are the most likely among the provinces to say they’re tightening their spending, yet those efforts may not be enough for many vulnerable households. It can feel like they’re constantly putting out financial fires.”
Albertans are more likely than residents in any other province (51 per cent) to say they’ve cut back on discretionary spending due to financial pressures. Over a third (35 per cent) are boosting their savings or emergency funds, while 25 per cent are focusing on paying down debt. Nearly a quarter (24 per cent) say they’re delaying major life goals like purchasing a home, starting a family or switching careers.
"There are signs that some Albertans are beginning to regain a modest sense of financial control amid economic uncertainty. The average amount households have left at the end of the month has increased to $951, up $101 from last quarter. This potentially signals that more Albertans are building a financial buffer in case of further economic disruption," shared the report.
To see the full report, click HERE.
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