(File Photo/ paNOW Staff)

By Ronald Quaroni

Debt vision

Provincial optimism rises despite difficult financial situation

Jan 21, 2020 | 12:00 PM

Saskatchewan residents are slightly more optimistic about their financial futures, despite their ongoing challenges, even as slightly more people struggle to make ends meet.

The latest MNP Consumer Index Report conducted by Ipsos states people’s net confidence in their finances over the next year is now up two percentage points to 55 per cent.

An MNP spokesperson explained the hold in the Bank of Canada’s interest rate helped settle consumer worry. Last year the small rises in interest rates pushed some people closer to the brink.

“Last year the Bank of Canada did some increasing of the interest rate. What we see a lot more of is people having home lines of credit. So a pretty significant debt against a home that is interest-rate driven. When we saw those things going up, it instantly impacted their cash flow for the month,” Pam Meger a senior vice president and licensed insolvency trustee told paNOW.

“What we saw is a lot of people really have taken a bigger picture look at their finances. They know things will be tight and they will have to be careful for the next year or so.”

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Despite the optimism, a depressed western economy and rising debt accumulation is still affecting families.

The report states there is a rise of two percentage points in the number of residents who report being $200 away from being unable to pay their bills at the end of each month.

“It’s a perfect storm of everything to be honest. To get everyone where they need to be and it’s really taking a toll on our economy and we are seeing those increases because we haven’t seen the economy bounce back yet,” Meger said.

Meger encouraged people wanting to break the debt cycle to pay off creditors and look to change mindsets and behaviours.

Prince Albert Chamber of Commerce CEO Elise Hildebrandt said financial outlooks have a big impact on the local economy.

In an email she said the ongoing consumer debt plays a large role on the economy.

“When companies are financially ‘strapped for cash’ it makes daily business harder. Everyone is watching each dollar they make, your company may need new equipment, but if there isn’t the money available to purchase you don’t,” Hildebrandt said.

Hildebrandt expressed an uptick in consumer confidence is good for the local economy and has positive impacts on workplaces.

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ron.quaroni@jpbg.ca

Twitter: @RonaldQuaroni