A new report has found that though many Manitoba and Saskatchewan residents are feeling the weight of mounting debt, the stigma of bankruptcy is preventing them from seeking help.
On Monday, MNP LTD released a survey conducted by Ipsos, which found that 29 per cent of Manitoba and Saskatchewan respondents said they need help getting out of debt. However, despite this financial strain, 43 per cent said they would be embarrassed to seek help if their situation was bad enough to consider bankruptcy.
The report found that though 89 per cent of Manitoba and Saskatchewan residents said there is no shame in seeking help, there seems to be a gap between belief and action.
“I’ve been doing this job for 18 years, and the stigma of the word ‘bankruptcy’ is still loud and clear,” said Tanya Reynolds, licensed insolvency trustee with MNP LTD.
“Maybe it’s a little more dull than it used to be, but it’s still there. So people are really hesitant to reach out and just have a conversation about it. They feel embarrassment.”
The MNP survey also found that 24 per cent of Manitoba and Saskatchewan respondents said they don’t know how to get out of debt, while 44 per cent don’t trust professional companies to help. Thirty-four per cent of respondents don’t believe they will ever be debt-free.
In terms of financial habits, 23 per cent of Manitoba and Saskatchewan residents said they only paid the minimum payment on their credit card, with 16 per cent admitting to delaying or skipping bill payments. Thirteen per cent of respondents sold their personal belongings to make ends meet.
Numbers from the Office of the Superintendent of Bankruptcy show that consumer insolvencies increased by 4.4 per cent in Manitoba in 2024.
“The message always is that having that information and making an informed decision is always going to be better than guessing…So sitting down and speaking with a professional, speaking with a licensed insolvency trustee,” Reynolds said.
“We’re regulated by the government, so the information we’re giving you is real.”
This survey was conducted by Ipsos on behalf of MNP from Dec. 6 to 17, 2024. A sample of 2,003 Canadians aged 18 and older were interviewed as part of the report. The poll is accurate within plus-minus 2.5 percentage points, 19 times out of 20.
- With files from CTV’s Alexandra Holyk.
