The stigma of bankruptcy is stopping a third of Saskatchewan residents from getting help. (114404596 Piotr Trojanowski dreamstime.com)

By Ronald Quaroni

Debt Fear

Bankruptcy claims on the rise in the province

Jul 30, 2019 | 11:59 AM

Saskatchewan residents are struggling to make ends meet and a new MNP Consumer Debt Index highlights that.

In a year-over-year comparison, the number of people who filed for bankruptcy in the first quarter, is up 8.4 per cent.

While the number of bankruptcies is on the rise, the number of people who need debt relief is much higher, with many keeping their financial problems a secret.

“People feel they failed, like they didn’t do something right, they should have known better, ‘I should have been prepared better,’” Pamela Meger, senior vice president with MNP’s Insolvency and Corporate Restructuring group said. “It’s really hard to admit that you didn’t quite make it and you should definitely not be ashamed by that.”

Meger explained in the report one third of residents say the stigma of bankruptcy prevents them from seeking help and nearly half of people would be too embarrassed to get help.

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She added people who are in debt trouble will sometimes ignore the problem, hoping a raise at work, good tax refund or windfall of money will bring them out of their financial situation.

“Sometimes those things happen and that’s wonderful. It’s really hard to look in the mirror and say, ‘I have to go, I have to do something,’” Meger said.

She encouraged people to seek out assistance with a licensed insolvency trustee.

“The quick fix ones, you should be cautious about that and really be asking about their regulations and who does regulate them,” she said.

Meger said the consumer is not all to blame; rising cost of living rates, an increase to the Bank of Canada rate and a slowdown in the economy have forced Saskatchewan families to rely on debt to stay afloat.

Prince Albert’s economy has not been immune to the slow down, but there is hope.

At Monday’s Chamber of Commerce barbecue, a number of business owners expressed optimism.

Prince Albert Chamber of Commerce CEO Elise Hildebrandt indicated the local economy is in a holding pattern.

“Things are remaining calm. I think there’s probably a lot of, I wouldn’t say nervousness, just a lot of ‘Let’s wait and see,’” Hildebrandt said. “Our farming industry is waiting to see what China is going to do with canola. We know within our city we’re waiting on the diamond mine, the pulp mill, the hospital. Everyone is watching each of these industries going, ‘Is this one going to take off, are we ready for when it does?'”

Hildebrandt said once one or some these projects start moving the trickle-down effect will be felt in the city.

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Ron.quaroni@jpbg.ca

Twitter: @RonaldQuaroni