Albertans feeling financial pinch more than residents of other provinces, survey suggests

Albertans are feeling the stress of debt because of higher interest rates more than people in any other province, a new poll suggests.

The poll by the insolvency firm MNP LTD found that 40 per cent of Albertans feel more financially stressed since the Bank of Canada raised its benchmark interest rate by 25 basis points in July and again in September, bringing the rate to one per cent.

Forty per cent of respondents in Alberta say another rate hike could move them towards bankruptcy.

The central bank is scheduled to release its next decision on interest rates on Wednesday.

The poll suggests Albertans have, on average, $260 less at the end of the month and are concerned about their ability to repay their debts as interest rates rise.

"It's no surprise that Albertans are feeling anxiety about higher rates," said Zaki Alam, an Edmonton-based licensed insolvency trustee at MNP LTD.

Many Albertans took on more debt to make ends meet during the downturn, Alam said on Monday.

Fifty-five per cent of Albertans are concerned about their ability to repay their debts, compared to 47 per cent of people in B.C. and Quebec, 45 per cent in Saskatchewan, Manitoba and Atlantic Canada and 44 per cent in Ontario.

Compared to other age groups, millennials are the most likely to be feeling the effects of interest-rate increases and are most concerned with their ability to repay their debts.

Forty per cent of millennials express concerns that rising interest rates could move them towards bankruptcy, compared to 30 per cent of gen-Xers and 18 per cent of the baby boomers who responded to the survey.

Now that rates are climbing, Albertans may "reassess their spending habits — especially using credit," Alam said.

The latest data was compiled by Ipsos on behalf of MNP between Sept. 18 and Sept. 21.

Ipsos interviewed 2,005 Canadians aged 18 years and older in an online survey.

The results are considered accurate within plus or minus 2.5 percentage points, 19 times out of 20, MNP said.