Survey reveals Albertans concerned about debt, job loss, personal finances amid COVID-19 pandemic

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“Everyone in Alberta is experiencing some sort of financial disruption right now whether with their paycheques, in their pocketbooks, or in their stock portfolios,” says Zaki Alam, a licensed insolvency trustee with MNP LTD, in a release. “Many in the province were already saddled with a lot of debt before the pandemic and are now heading into economic survival mode.”

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Now in its 12^th wave, the MNP Consumer Debt Index currently sits at 93 points (-3pts) reaching the lowest point ever recorded.

“Our results underscore how vulnerable Canadian households are to income interruption,” adds Grant Bazian, president at MNP LTD. “Over the next few months we’ll likely see an unfolding of two crises: the global pandemic and the bursting of the Canadian consumer debt bubble.”

Against the backdrop of a global pandemic, MNP officials suggest Albertans are significantly more likely than any other province to say they are worried that either themselves or someone in their household could lose their job (46 per cent, +8pts). Albertans are also the most likely (46 per cent, +10pts) to say they are not confident in their ability to cope financially with the loss of employment, change in wages or seasonal work without going further into debt.

Although lower interest rates, monetary policy interventions and flexibility on the part of lenders are designed to assist Albertans to manage through this crisis, its anticipated many will require extra support.

“There is a regulated system in place that can help individuals achieve financial stability again,” says Alam. “Those who were already deeply indebted and have now suddenly lost their jobs need to go through the right channels for support.”

MNP officials note licensed insolvency trustees can guarantee legal protection from creditors as they guide individuals through the consumer proposal or bankruptcy process. As the only government-regulated debt relief professionals, they are empowered to help debtors reorganize their financial affairs and, where appropriate, can even help them avoid bankruptcy by negotiating an agreement with their creditors.

“One of the worst things for households to do is panic and run up credit cards or take out payday loans,” stresses Alam. “Losing your income overnight is a terrifying experience but if you are in danger of missing payments, you should communicate with your creditors right away and seek debt advice from a licensed professional.”