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Insolvency, bankruptcy rates up in Saskatchewan: MNP report

The MNP Consumer Index Report indicates 45 per cent of people in Saskatchewan believe they can't cover their expenses in 2020 without going deeper into debt.
The MNP Consumer Index Report indicates 45 per cent of people in Saskatchewan believe they can't cover their expenses in 2020 without going deeper into debt. Getty Images

Insolvency and bankruptcy rates in Saskatchewan are rising, according to the latest MNP Consumer Index Report.

The report indicates about 52 per cent of residents say they could not cover a $200 expense at the end of the month.

Forty-five per cent believe they won’t be able to cover their expenses in 2020 without diving deeper into debt.

READ MORE: Two in five Canadians believe they will never be debt-free

“Consumer debt is still a real problem… one of the biggest issues is many have allowed their debts to snowball and are now in a position where it is very difficult to get back on track financially,” said Pamela Meger, Regina-based licensed insolvency trustee with MNP Ltd.

The amount of bankruptcy filings in Saskatchewan is up 24 per cent year over year — the highest countrywide.

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According to Statistics Canada, retail sales are also down 2.2 per cent in the province year over year.

Meger suggests anyone struggling with debt should seek professional help.

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“Anyone who finds themselves using credit to make ends meet should get help from a licensed professional. They can work with you to deal with your debts and help create a budget,” Meger said.

“You don’t have to have a minimum amount of debt to seek professional support. If your debt has reached the point where it is causing stress or impacting relationships, don’t wait any longer to get help.”

Statistics Canada reports employment insurance claims increased 11 per cent year over year.

Investments made in building and residential construction is down, 10 per cent and 18 per cent respectively, according to Statistics Canada.

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