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
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
Five areas Canada's foreign interference commissioner says needs more investigation
Commissioner Marie-Josee Hogue released her interim report examining foreign election interference on Friday. Here are five elements of the issue that Hogue says she needs to further probe before she can make conclusions or recommendations.
Police officer hit by driver of fleeing vehicle in Toronto
York Regional Police say they are continuing to search for a suspect in an auto theft investigation who was captured on video running over a police officer in Toronto last month.
Why your airfare may be getting more expensive
Skyrocketing airfare prices are linked to heightened competition and rising food and fuel, according to the CAA.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
New weight-loss drug Wegovy not a 'magic bullet,' doctor warns
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.
Manitoba man sentenced to house arrest for keeping fishing tournament funds meant for Children's Hospital Foundation
A Manitoba man who pleaded guilty to keeping the funds raised from an ice-fishing fundraiser for the Children's Hospital Foundation of Manitoba has been handed a sentence of 18 months house arrest.
Funeral today for broadcasting legend and voice of 'Hockey Night in Canada' Bob Cole
A funeral is being held today for hockey broadcasting legend Bob Cole in his hometown of St. John's, N.L.