Fifty-one per cent of Maritimers believe they won’t be able to cover all living expenses in the next 12 months, according to a new survey by MNP Ltd.
Ed McHugh, a business professor, says things aren’t getting any cheaper.
“There are about half of us – in fact over half of us – now living pay cheque to pay cheque. That’s understandable. It’s been a tough go for people. Inflation in the last few years since COVID, it’s been in double digits, obviously the interest rates are high, mortgage rates are high, rents are increasing,” says McHugh
Tina Powell, MNP Ltd. License Insolvency Trustee says the findings were pretty dismal.
“Three in 10 people that were surveyed feel that they are already insolvent,” says Powell. “Half think they won’t be able to cover their living expenses and debt payments in the next 12 months.”
The survey found 29 percent of respondents say they are already unable to cover their bills.
“It’s very concerning, but not surprising. We have anticipated based on the record high cost of living even though interest rates have come down, we know that many people are struggling financially,” says Powell.
Nineteen-year-old Vansheita Bhatia who just moved to the Maritimes from London, Ont., says the cost of living is much more here.
“If we compare Ontario and Halifax with their really bad condition, the rent is really high, the groceries, the taxes, it’s really the worst case,” says Bhatia.
Cecil Boucher from Halifax say the costs are concerning.
“Everything you look at, everything is expensive, very expensive,” says Boucher. “Rent, food is a killer right now, anything you buy”.
For some Maritimers, going into debt is the only option.
“The problem becomes, what if you hit a hiccup, what if you hit a major expense, what if your car gives out or a major repair at your house? That’s the problem, when that major expense comes along that you didn’t budget for and you have to pay it like you have to fix the roof , you’ve got to buy a new car, so you have no alternative but to go into debt,” says McHugh
McHugh says he doesn’t foresee prices ever going down.
“Next year won’t be better for most people. This time next year you’ll be at a similar economic status as you are right now unless you see some money coming in some way,” he says.
McHugh says the options for Maritimers are either try to find a way to decrease your expenses or increase your revenue.
