New Brunswickers grapple with inflation isolation: rising costs impacting mental health, increasing loneliness, isolation, stress, and anxiety

• Over half are staying home more often (55%), and two in five are socializing less (44%).
• Atlantic Canadians are the most likely to spend less time with friends to save money compared to the other provinces (40%).
• Atlantic Canadians are the most likely to be experiencing a sense of social isolation because of inflation and high interest rates compared to the other provinces (32%).
• Atlantic Canadians are the most likely to feel more anxious because of inflation and high interest rates compared to the other provinces (55%).
• More than half (52%) don’t believe they can cover all their living and family expenses in the next 12 months without going further into debt, up a staggering 11 points from the previous quarter.

MONCTON, NB – November 27, 2023 – Inflation isn’t just affecting Atlantic Canadians’ personal finances. It’s also taking a toll on their mental health. A recent Ipsos poll conducted on behalf of MNP LTD reveals higher costs and interest rates appear to be causing an isolation phenomenon, with more than half of Atlantic Canadians saying they’re staying home more often (55%) to save money. Two in five say they’re spending less time socializing (44%) to cut spending. Compared to the other provinces, Atlantic Canadians are the most likely to spend less time with friends (40%) and to feel a sense of social isolation (32%) because of higher interest rates and inflation. One in five are feeling a sense of loneliness (20%). Burdened with the constant worry of making ends meet, they are also the most likely to say that the current economic conditions have made them feel more anxious (55%) and stressed (49%).

“High inflation and interest rates are eroding Atlantic Canadians’ finances and significantly affecting their mental health,” says Tara Silliker, a local Licensed Insolvency Trustee with MNP LTD. “The rising costs of life’s necessities and mounting debt are causing anxiety and stress. People are scaling back on social activities and time with friends and family. The isolating effects are a big concern.”

A third of Atlantic Canadians (33%) say their monthly debt payments have increased compared to a year ago. One in 10 (11%) is paying an additional $200 toward their debt each month compared to a year ago. More than half (52%) don’t believe they can cover all their living and family expenses in the next 12 months without going further into debt, up a staggering 11 points from the previous quarter.

“Debt often isolates people, both emotionally and socially. The overwhelming burden tends to distance us from friends and family,” explains Silliker. “We often see heavily indebted individuals withdraw from social engagements and relationships because they’re ashamed and worry they’ll be judged. Financial struggles can impact anyone, and everyone should know that help is available. Licensed Insolvency Trustees provide impartial advice and support that empowers individuals to confront their debt challenges head-on.”

Affordability anxiety, debt, and a lack of financial literacy are all amplifying Atlantic Canadians’ financial stress. One in five (23%, +4 pts) don’t completely understand how interest rate increases affect their financial situation. Still, Atlantic Canadians are the most likely (69%, +4 pts) compared to the other provinces to worry about the impact of rising interest rates on their financial situation. They are also the most likely (93%, +5pts) to say they’ll be more careful with how they spend their money because of rising interest rates.

“Personal finance and debt management can be complex. It’s not always obvious what options are available, much less which is best in any situation,” says Silliker. “That’s where professional advice can make all the difference. Bankruptcy is not the only recourse for those who are severely indebted. Licensed Insolvency Trustees can offer guidance on options like Consumer Proposals, debt management plans, budgeting, and debt consolidation.”

The potential for unexpected expenses also has Atlantic Canadians feeling pessimistic. Compared to July, significantly more Atlantic Canadians don’t believe they could cope with the following:

• an unexpected auto repair or purchase (34%, +10 pts)
• a change in their relationship status, such as a divorce or separation (37%, +16 pts)
• having an illness and being unable to work for three months (36%, +16 pts)
• paying for their own or someone else’s education (46%, +7 pts)

Atlantic Canadians are the most likely to feel pessimistic about how a change in relationship status or paying for education would impact them financially compared to the other provinces. A third do not believe they could financially cope with a reduction in income due to a job loss, change in their wage or seasonal work (32%, +1 pt), or the death of an immediate family member (32%, -2 pts).

Harassing phone calls from collection agencies can be an additional source of stress for many Atlantic Canadians. Upon filing a Bankruptcy of Consumer Proposal, Silliker says Licensed Insolvency Trustees can communicate directly with creditors on the individual’s behalf. Both options also put a halt to wage garnishments and calls from creditors.

Licensed Insolvency Trustees are the only federally regulated debt professionals who can assist with all the debt relief options, including Consumer Proposals and Bankruptcy, stop harassment from debt collectors, and discharge people from debt.

“It’s common to see individuals postpone seeking professional debt help for up to a decade. All that does is cause needless stress trying to make ends meet and manage calls from creditors. People should know they’re not alone. Help is available, and there’s always a way to resolve their financial difficulties.”

To support those in need of financial assistance, MNP provides free consultations across the country.

About MNP LTD

MNP LTD, a division of the national accounting firm MNP LLP, is the largest insolvency practice in Canada. For more than 50 years, our experienced team of Licensed Insolvency Trustees and advisors have been working with individuals to help them recover from times of financial distress and regain control of their finances. With more than 240 offices from coast to coast, MNP helps thousands of Canadians each year who are struggling with an overwhelming amount of debt. Visit MNPdebt.ca to contact a Licensed Insolvency Trustee or use our free Do-it-Yourself (DIY) debt assessment tools. For regular, bite-sized insights about debt and personal finances, subscribe to the MNP 3-Minute Debt Break Podcast.

About the Survey

The data was compiled by Ipsos on behalf of MNP LTD between September 5 and September 8, 2023. For this survey, a sample of 2,000 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.