Alberta households most likely to face ‘heat or eat’ decisions
Albertans are facing some of the toughest financial trade-offs in the country, with many cutting back on essentials such as heat and food as economic pressures mount, according to the latest MNP Consumer Debt Index.
The quarterly survey, conducted by Ipsos, shows that Albertans are the most likely in Canada to reduce their utility use (39 per cent) or eat less (33 per cent) to save money. Licensed insolvency trustee Lindsay Burchill of Alberta-based MNP LTD said the findings highlight “the very real emotional impact” of financial strain.
“We’re seeing more Albertans than anywhere else having to pull back on essentials like meals and utilities like heating to save money,” said Burchill.
Half of Albertans reported being within $200 of not being able to cover their bills each month, while the average amount left over after expenses has dropped to $813, down $139 from last quarter.
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Beyond food and heat, 67 per cent say they’re grocery shopping more strategically, 53 per cent are avoiding impulse buys, while 50 per cent have stopped dining out, a “significant” nine points higher than last quarter. One in five Albertans also reported delaying or skipping medical, dental or prescription care.
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The survey also found that Albertans have the lowest confidence nationwide in their ability to weather a job loss, with a net negative score of -25. Nearly half (45 per cent) worry artificial intelligence could harm their job or income, while just 41 per cent say they have six months of emergency savings.
“Albertans already facing financial strain now see AI adding a fresh layer of uncertainty,” Burchill noted. “When people are unprepared for a loss of income, the idea that their jobs could be at risk from AI deepens their sense of vulnerability.”
Just over one-third (37 per cent) of Albertans rate their debt situation as “excellent,” while more than one-quarter (26 per cent) describe it as “terrible,” the largest share among all provinces. While the Bank of Canada cut its benchmark rate to 2.5 per cent after holding at 2.75 per cent during the survey, three in five (61 per cent) still say they desperately need rates to go down.
The report warns many Albertans are running out of options. One-quarter (24 per cent) say they have no plans to save more this year, while significantly more this quarter (13 per cent, up seven points) say they plan to eat less to cut costs.
“With winter heating bills coming, some households are already at the point where difficult choices between food and heat are unavoidable,” Burchill said.
You can find the full MNP Consumer Debt Index report online.