Saskatchewan and Manitoba residents grapple with inflation isolation: rising costs impacting mental health, increasing loneliness, isolation, stress, and anxiety

• Saskatchewan and Manitoba residents are the most likely to stay home more often (61%) to save money compared to the other provinces.
• About two in five are spending less time socializing (44%) and with friends (35%) to cut spending.
• A quarter are experiencing a sense of social isolation (26%) or loneliness (25%).
• Two in five are feeling stress (43%) and anxiety (42%) due to inflation and high interest rates.
• Nearly half 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 (48%). 
• Nearly a quarter (23%) don’t have a solid understanding of how interest rate increases impact their financial situation. 

REGINA, SK – November 27, 2023 – Inflation isn’t just affecting Saskatchewan and Manitoba residents’ 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. Three in five Saskatchewan and Manitoba residents say they are staying home more often (61%) to save money — more than those in any other province. About two in five say they are spending less time socializing (44%) or with friends (35%) to cut spending. A quarter are feeling a sense of social isolation (26%) or loneliness (25%) because of higher interest rates and inflation. Burdened with the constant worry of making ends meet, two in five Saskatchewan and Manitoba residents say that the current economic conditions have increased their stress (43%) and anxiety (42%). 

“High interest rates and inflation aren’t just affecting the finances of Saskatchewan and Manitoba residents; they’re also significantly impacting their mental health,” says Pamela Meger, a Licensed Insolvency Trustee with MNP LTD in Regina. “The pressure to keep up with the increased cost of necessities and mounting debt is causing anxiety and stress. People are withdrawing from social activities and sacrificing time with friends and family to cut down on costs, illustrating the isolating impacts of inflation.” 

Three in 10 Saskatchewan and Manitoba residents (30%) say their monthly debt payments have increased compared to a year ago. One in five (19%) is paying more than an additional $200 toward their debt each month compared to a year ago. Nearly half (48%) 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 frequently isolates people, both emotionally and socially. The overwhelming burden tends to distance us from friends and family,” explains Meger. “It’s not uncommon for those who are deeply in debt to pull back from social activities and relationships out of fear of judgement or feelings of shame. Financial challenges can happen to anyone, and everyone should know that help is available. Licensed Insolvency Trustees provide unbiased guidance and support to help individuals deal with their debt struggles.” 

Affordability anxiety, debt, and a lack of financial literacy are all amplifying Saskatchewan and Manitoba residents’ financial stress. Nearly a quarter (23%, +5 pts) don’t completely understand how interest rate increases impact their financial situation. Nearly seven in 10 (68%, +8 pts) are concerned about the impact of rising interest rates on their financial situation, marking a significant eight-point increase since last quarter. The vast majority (88%, +1 pt) say they will be more careful with how they spend their money because of rising interest rates.

“Having a solid understanding of the intricacies of debt management and personal finance is essential for making informed financial decisions, which is why asking for professional advice is so important,” Meger says. “Bankruptcy is not the only option for those who are severely indebted. Licensed Insolvency Trustees can help advise on options such as debt management plans, debt consolidation, budgeting, and Consumer Proposals.”

Saskatchewan and Manitoba residents also feel pessimistic about their ability to cope financially with unexpected expenses. About three in 10 are not confident they could cope with the following: 

• an unexpected auto repair or purchase (29%, -2 pts) 
• a change in their relationship status, such as a divorce or separation (29%, +3 pts)
• the death of an immediate family member (34%, -3 pts)
• having an illness and being unable to work for three months (34%, +4 pts) 

Additionally, around two in five Saskatchewan and Manitoba residents are not confident they could financially cope with a loss of employment or change in their wage or seasonal work (38%, +2 pts) or paying for their own or someone else’s education (39%, +1 pt). 

Harassing phone calls from collection agencies can be an additional source of stress for many Saskatchewan and Manitoba residents. Upon filing a Bankruptcy or Consumer Proposal, Meger 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. 

“People often wait years, in some cases up to a decade, before seeking professional help with their debt. They needlessly live with the constant stress of managing calls from creditors and trying to make ends meet. People should know they’re not alone. Help is available, and it’s always possible to recover from 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.