A record number of Albertans are concerned about being able to manage their debt

The number of Canadians facing insolvency has hit a record high, with more than a third (35 per cent) saying they cannot meet their financial obligations.

Albertans are expressing the most concern, with 72 per cent saying they are now more concerned about their ability to pay their debts.

That marks a 21 per cent increase over the last quarter, setting an all-time record.

Those figures are included in the latest Consumer Debt Index, released by Alberta-based MNP Ltd., Canada's largest insolvency practice.

"Weighed down by inflation and higher interest rates, a record number of Albertans are concerned about being able to manage their debt as interest rates rise," says Donna Carson, a licensed insolvency trustee with MNP.

"The increasing strain of household bills and food prices has heightened their financial anxiety, further compounded by the escalating interest costs, especially for those who were already saddled with mounting consumer debt."

More than half (56 per cent) of Albertans say they regret the amount of debt they have taken on in their lifetime, and close to three-quarters (74 per cent) say they are feeling the effects of rising interest rates.

That's a higher percentage than in any other Canadian province.

Perhaps more ominous is the finding that nearly half (46 per cent) of those surveyed say they are less than $200 from failing to meet their financial obligations.

"The dramatic increase in the cost of living is resulting in a range of financial pressures for households, and without much wiggle room in their budgets, there is a looming risk of falling into arrears on payments," Carson said.

"That's when credit cards or other bills may go past due, at which point, the late fees are triggered and interest accrues quickly. That's when many households start to play a difficult game of catch-up."

Calgarian Ruth Smith says she's one of those hurting in today's economy.

She just found out her rent is going up, and she's not sure there's anywhere else in her budget left to trim.

"Just surviving day to day is getting difficult -- like utilities, groceries, gas. We're just barely making ends meet." Smith said.

"We're eating half of what we were two years ago. Literally, like, I mean, there's meat in our diet maybe once a week now. ... It's just too expensive.

"There's not much left to cut. ... By the time we get everything paid, there's nothing left at the end, you know?"

The MNP Consumer Debt Index was released just days before the Bank of Canada is expected to once again raise its overnight interest rate by a quarter point.

"This is a time at which people and households in general need to take a second and hard look at their budget," said Jean David Tremblay-Frenette, chief economist for the Alberta Investment Management Corporation.

"You should really sit down and think about, you know, where could they potentially make some arrangements to spend a little bit less ... and to ensure that they've got just enough disposable income to pay all of their obligations."

The MNP Quarterly Debt Index Survey was conducted by Ipsos between June 1 and 6.

A sample of 2,000 Canadians aged 18 years and over was interviewed.

The poll is considered accurate to within ±2.5 percentage points, 19 times out of 20.