Increasing amount of Sask. residents say basic needs becoming less affordable: report
A rising amount of residents in Saskatchewan say affording basic necessities is becoming more difficult over time.
According to a recent Consumer Debt Index report released by MNP, 52 per cent of people in Saskatchewan and Manitoba said it is becoming less affordable to feed themselves and their family, compared to 50 per cent in December 2021.
Over the same timeframe, 47 per cent said it is more difficult to put money aside for savings – up eight percent. Forty per cent said it is more difficult to pay for transportation, up five per cent, while 39 per cent of people feel clothing is also more difficult to afford – a three percent increase from December of 2021.
“Households are having to put more money towards paying for basic living expenses as the cost of living rises and that is leaving less of a financial buffer which is critical to managing the impacts of interest rate hikes,” Pamela Meger, a licensed insolvency trustee with MNP LTD in Regina, said in a release.
However, the report revealed that fewer residents in the two provinces are finding themselves closer to insolvency, currently at 48 per cent compared to 53 percent last quarter.
Insolvency means a person is $200 or less away from not being able to meet all of their financial obligations.
“There has been a slight improvement in the number of individuals who are at risk of insolvency since last quarter, however, we do need to acknowledge that nearly half of Saskatchewan and Manitoba residents are still just $200 away from not being able to cover their bills and debt obligations,” Meger said. “Any future hikes to interest rates or the prices of basic necessities could chip away at the amount they have left over at month-end and push some individuals closer to insolvency.”
According to the report, one in three Saskatchewan or Manitoba residents expect their current debt situations to improve over the next year and far more people are now rating their personal debt situation as excellent. Fewer people are rating their credit situation as terrible, when compared to December of 2021.
“The economic situation here is still unfolding and it’s possible the optimism we are seeing here could be only temporary. We tend to notice the effects of interest rate hikes over time, so we may currently be seeing a false sense of optimism,” Meger said.
Data for the report was collected by Ipsos, a marketing research company, between Sept. 6-13, 2022. A sample of 2,000 Canadians 18 years and older were interviewed.
The report is accurate within +2.5 percentage points, or 19 out of 20 times, according to MNP.
CTVNews.ca Top Stories
NDP motion regarding Palestinian statehood passes after major Liberal alterations
A motion from the federal New Democrats initially calling on Canada to recognize the 'State of Palestine' passed amid widespread acrimony on Monday, after the Liberals drastically altered its wording to see the government simply work towards that aim as part of a two-state solution.
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.