New poll looks at how Manitobans feel about interest rates

A new poll has determined that Manitoba and Saskatchewan residents are less likely to say they are concerned about interest rates compared to those in other provinces.

The poll, which was conducted by Ipsos on behalf of MNP LTD in September, found that 53 per cent of residents in these two Prairie provinces are not concerned about how rising interest rates will impact their financial situation – a 10-point decrease since last quarter.

The survey also found that 80 per cent of those in Manitoba and Saskatchewan agree that with rising interest rates they will be more careful with how they spend their money, a nine-point decrease. Though 80 per cent is the majority of people, MNP notes that Manitoba and Saskatchewan residents were still the least likely of any province to say they will be more cautious with spending.

“It is certainly surprising to see that Manitoba and Saskatchewan residents are feeling less concerned about the impact of those hikes, after the numerous interest rate hikes this year. It is also concerning that fewer individuals plan to be careful with their spending as rates increase,” said Tanya Reynolds, a licensed insolvency trustee with MNP LTD in Winnipeg.

“It’s too soon to start loosening the reins just yet, because we have yet to see the full impact of this year’s interest rate hikes, and there could still be more hikes ahead.”

The poll, which surveyed a sample of 2,000 Canadians aged 18 and older, also determined that 29 per cent of Manitoba and Saskatchewan residents said they are better equipped to absorb an interest rate increase of one percentage point than they used to be, an increase of 12 points from the previous quarter. At the same time, 23 per cent said their ability to deal with the increase has worsened.

Reynolds highlighted the fact that though more Manitoba and Saskatchewan residents think they are better equipped for an interest rate increase, it is still the minority of people.

“There are many who may not fully understand the impact of an interest rate increase on their financial situation,” Reynolds said.

“To anyone who finds themselves struggling to meet all of their debt repayment obligations, I would encourage them to seek professional guidance to deal with their debt.”

Despite some people saying they are prepared for an increase, many people in Manitoba and Saskatchewan are concerned about their debt.

The poll, which has a margin of error plus or minus 2.5 percentage points 19 times out of 20, found that 56 per cent of people in these two provinces said that as interest rates rise they are increasingly concerned about their ability to pay their debts. This is an increase of seven points since last quarter.

The survey also showed that 59 per cent of Manitoba and Saskatchewan residents already feel the effects of interest rate increases, and 34 per said they don’t have a solid understanding of how these increases can impact their financial situation.

Nearly half of those surveyed in Manitoba and Saskatchewan said they could face financial trouble if interest rates increase much more, while almost 40 per cent said that rising rates could bring them closer to bankruptcy.