Insolvency Trustee MNP’s latest Consumer Debt Index shows that close to 70 per cent of respondents in Atlantic Canada say at least half of their next paycheck is already committed to bills, debt payments and regular expenses.
That’s leading to what MNP calls, ‘lifestyle shrinkflation’ with two in five of those surveyed indicating that they are struggling to get ahead, and a similar number saying they’re cutting back on spending on family and personal enjoyment.
Licensed Insolvency Trustee with MNP, Tara Silliker, says Atlantic Canadians are feeling the pinch more than anywhere else in the country.
The survey found that three in five households are “desperate” for interest rates to come down, while almost half of those asked are cutting back on buying clothes, personal care, and children’s activities.
Silliker says the rising cost of living is forcing people to make difficult choices.
“Atlantic Canada seems to be the most impacted and we’ve experienced in Atlantic Canada some of the fastest increases in rental rates, home prices, groceries, energy costs, and the income growth in this region has just not kept pace with those living costs.”
