Atlantic Canadians regret debt more than other provinces, says insolvency trustee

When it comes to personal finances, these are troubling and stressful times for many.

“Atlantic Canadians are the highest among the other provinces to regret any of the debt they have taken on,” said Meyers Norris Penny (MNP) insolvency trustee Tina Powell.

According to a recent study from MNP, a national firm that specializes in insolvency:

• 52 percent of Atlantic Canadians have overall debt regrets.
• 25 per cent of Atlantic Canadians have dipped into savings, home equity or other methods to reduce debt to pay for day-to-day expenses.
• 26 per cent of Atlantic Canadians only make the minimum payment on their line of credit, which reduces the ability to pay it down.

In Atlantic Canada, one of the main pressure points is the rising cost of living.

“Living costs have surged in the last couple of years,” said Powell.

The study also shows financial struggles are causing high levels of anxiety, stress, and isolation.

“There is absolutely a connection between mental health and debt,” said psychologist Simon Sherry, who added debt can have a corrosive effect on mental health.

MENTAL ILLNESS AND DEBT

“But we also really have to consider that mental health problems result in you being in debt.”

Being depressed or suffering from any mental illness, said Sherry, can limit work availability, which can then lead to increased levels of financial despair.

“A psychologist or psychiatrist, or other such professional, if they can improve people’s mental well-being, they also improve their financial well-being,” said Sherry.

Moncton-based financial planner John Maisey has basic tips for people who are struggling financially.

“I wouldn’t necessarily go out to the biggest overall debt first,” said Maisey, who advises consumers to target personal debt with the highest interest rate. “So look at your credit card statements. If you have one that’s a 22.99 per cent or 26.99 per cent, focus on that one first.”

According to Maisey, as people strategically reduce debt, they will not only minimize stress but also position themselves to save money in the future.