Debt not a big concern for Albertans: poll

Some Albertans voice their concerns about government debt and deficits. But a new study shows a majority aren’t worried about their own debt — unless the unexpected happens.

An Ipsos survey of Canadians found 57 per cent of Albertans don’t anticipate taking on additional debt over the coming year. About 23 per cent said their debt situation has actually improved, while 52 per cent expect their finances will get still better within the next five years.

But more than 40 per cent of Albertans included in the survey of about 2,000 Canadian adults said their debt-reduction plans would be affected if they faced a divorce, a serious illness, a death in the family or a job loss.

Baby boomers are the most confident about coping with financial pressures, the poll revealed, while men are generally more comfortable than women.

The online Ipsos survey, conducted in June, covered 2,002 men and women coast to coast. After balancing for demographics, it likely included about 200 Albertans. The overall accuracy rate was pegged at 2.5 per cent, plus or minus, 19 times out of 20.

Commissioned by the MNP business services group, it found 41 per cent of Albertans were concerned that someone in their household could lose a job.

“The results show Albertans aren’t prepared to cope with an emergency life event,” observes Randy Kobbert, a licensed insolvency trustee with MNP’s office in Lethbridge.

“It’s likely that the downturn depleted families’ savings, and many haven’t been able to rebuild that yet.”

An unexpected expense could put them in trouble.

“Far too many people think an emergency savings plan is a ‘nice to have’ and not a necessity,” he says.

“But unexpected home and car repairs, time off work due to layoffs or family emergencies happen to virtually everyone at some point in life. A rainy day fund will help prepare for the inevitable.”

For most families, Kobbert says savings equal to three to six months of living expenses would be sufficient.

Without that, a family facing a sudden financial crisis would have to consider a consumer payment proposal, in agreement with its creditors — or filing for bankruptcy. Follow @DMabellHerald on Twitter