Albertans are entering 2025 with growing financial anxiety, according to the latest MNP Consumer Debt Index conducted by Ipsos. The quarterly survey shows 57 per cent of Albertans are concerned about their ability to repay debts, even if interest rates decline—a 14-point increase from last quarter and the highest jump among all provinces.
More than half (51 per cent, up 12 points) worry that rising interest rates could push them toward bankruptcy, while two-thirds (67 per cent) say they desperately need interest rates to go down. These numbers underscore the continued financial strain on Albertans, despite recent rate cuts offering initial relief.
"Last year’s interest rate cuts may have offered some initial reprieve from their financial worries, but many Albertans are beginning the New Year with holiday bills coming due and a bleaker financial outlook," said Lindsay Burchill, a licensed insolvency trustee with MNP LTD.
Economic uncertainty is also reflected in growing job security concerns. Two in five Albertans (42 per cent, up nine points) worry that they or someone in their household could lose their job. The same proportion (42 per cent, up eight points) say they feel unprepared to handle a job loss or wage reduction, highlighting the precarious nature of employment for many.
The survey also shows that many Albertans are teetering on the edge of financial insolvency. Nearly one-third (32 per cent, up three points) say they already cannot meet their monthly bills and debt obligations. Meanwhile, 43 per cent report being $200 or less away from insolvency, reflecting little to no financial buffer for many.
"For individuals living paycheck to paycheck, any financial disruption can quickly escalate into a crisis, leaving them especially vulnerable to unexpected expenses or income changes," Burchill said.
Despite these challenges, some signs of resilience are emerging. Eighteen per cent of Albertans, up four points from last quarter, feel better equipped to handle an additional $130 in interest payments. However, 37 per cent said they are much worse off, a slight decrease from last quarter, showing uneven progress.
Nearly half (47 per cent) believe they will need to take on more debt to cover living expenses in the next 12 months. This figure, though high, has dropped six points from the previous quarter, indicating slight improvement. At the same time, 16 per cent expect their debt situation to worsen in the coming year, while 28 per cent are optimistic about improvements.
While the New Year is often seen as a time to set financial goals, lingering financial challenges may overshadow these efforts for many Albertans. Burchill stressed the importance of seeking professional advice early.
"Consulting with a licensed insolvency trustee is a crucial first step in regaining control and avoiding more serious issues, such as mounting late fees, interest charges, collection calls, or wage garnishments," she said. "A trustee can help indebted Albertans explore personalized solutions, including debt management plans, budgeting strategies, debt consolidation, consumer proposals, and, if necessary, bankruptcy."
Licensed insolvency trustees are Canada’s only federally regulated debt professionals. MNP LTD, the country’s largest insolvency practice, operates more than 200 offices nationwide. It provides free consultations to help individuals navigate their debt. MNP also offers DIY debt assessment tools to help Albertans understand their financial options.
The MNP Consumer Debt Index, now in its 31st wave, measures Canadians’ attitudes toward debt, financial resilience, and ability to manage unexpected expenses or interest rate changes. The latest survey, conducted between Dec. 6 and Dec. 17, 2024, interviewed 2,003 Canadians aged 18 and older.
The results are considered accurate within ±2.5 percentage points, 19 times out of 20.
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