New report spotlights financial toll of pandemic on Atlantic Canadians

A new report is shining a light on the financial impact of the coronavirus pandemic on Atlantic Canadians.

The MNP Consumer Index, conducted quarterly by Ipsos, found that 47 per cent — or nearly half of all Atlantic Canadians surveyed — are not confident they can cover their living expenses in 2021 without going further into debt. That number was up 11 points from last quarter, and represents the highest increase compared to all the other provinces.

“The pandemic set into motion many unexpected life-changing financial disturbances that no one prepared for. Unexpected expenses are one of the biggest causes of financial hardship,” says Tina Powell, a local licensed insolvency trustee with MNP Ltd.

Only one in five Atlantic Canadians say they are confident in their ability to cope with loss of employment, according to the report, while just one third of those surveyed believe they will be able to weather unexpected expenses without incurring more debt.

“I think low interest rates could be providing a false sense of security for people. Incurring debt such as increasing credit limits or high-interest loans to deal with existing debt will eventually spiral out of control,” Powell tells Global News.

“Government financial support and certain debt relief measures have allowed many people to make ends meet in the short term, but the signs are all pointing to further struggles for many Atlantic Canadians.”

The report also found that three in ten people say they have taken on more debt as a direct result of the pandemic, while on quarter say their debt keeps them up at night.

“A lot of people feel shame in dealing with their financial difficulty, as you know, it’s a common problem across Canada,” says Powell.

“Knowledge is power. Once you find out what options are available to get you back on track with your finances, it’s beneficial for many, many aspects of your day to day life.”

Powell says her biggest piece of advice is to set a budget and stick to it. She also recommends people seek help if they’re struggling with their finances.