Canadians are feeling the pressures of inflation when it comes to their mental health, according to a poll conducted by Ipsos on behalf of MNP LTD. “High inflation and interest rates are not just impacting Canadians’ finances, they are having a significant effect on their mental health as well,” said MNP President Grant Bazian in a press release. “The pressure to manage increased costs of basic necessities and mounting debt is causing anxiety and stress.” Ipsos said 51% of Canadians are staying home more often, isolating to save money. It added one-third are spending less time socializing or with friends to cut spending. One-fifth of Canadians said they are feeling a sense of social isolation or loneliness because of higher interest rates and inflation. With the constant worry of making ends meet, two-fifths said the current economic conditions have led to increased stress and anxiety. When it comes to monthly debt payments, Ipsos found one-third have reported paying more compared to one year ago. It said 46% do not believe they will be able to cover all of their living and family expenses in the next year without going further into debt. Affordability anxiety, debt and a lack of financial literacy exacerbate the financial stress experienced by Canadians. One-fifth do not feel they have a solid understanding of how interest rate increases impact their financial situation. Three-fifths said they are concerned about the impact of rising interest rates on their financial situation. More than four-fifths will be more careful with how they spend their money because of rising interest rates.The potential for unexpected expenses has Canadians feeling pessimistic about their ability to cope with finances. About three-tenths are not confident they would be able to cope with an unexpected auto repair or purchase, a change in their relationship status such as a divorce or separation, the death of an immediate family member or paying for their own or another person’s education. About the same amount are worried they would be able to deal with a loss of employment, change in their wage or seasonal work or having an illness and being unable to work for three months. While harassing phone calls from collection agencies can be an additional source of stress for many Canadians in debt, Bazian said licenced insolvency trustees can communicate with creditors on people’s behalf once a bankruptcy is filed or a consumer proposal is submitted, putting a halt to wage garnishments and harassment from creditors. Licensed insolvency trustees are the only federally-regulated debt professionals who can assist with all the debt relief options, stop harassment from collectors and discharge people from it. To support people in need of financial assistance, MNP provides free consultations across Canada. Ipsos said Canadians who have rated their personal debt as terrible were the most likely to feel increased stress (77%), anxiety and stay home more often (72%) and spend less time socializing (55%) or with family (33%) to save money. For younger Canadians and those with an income of less than $40,000 per year, it said they are the most likely to spend less time socializing and with friends, leading to an increased sense of social isolation and loneliness.Bazian concluded by saying people often take years “to seek professional help with their debt while needlessly living with the constant worry of creditors calling.”“It’s important people know that they are not alone, there is help available and there is a path out of financial hardship,” he said. Statistics Canada said on November 21 Canada’s inflation rate keeps slowing because of the highest interest rates in more than 20 years. READ MORE: Inflation slows but living costs keep rising; interest rates likely on holdAs the affordability crisis continues, Statistics Canada said the cost of living keeps going up amid continuing recession threats. Fuelled by lower gasoline prices, Canada’s inflation rate rose by 3.1% in October compared to 3.8% the month before. The poll was conducted online among a sample of 2,000 Canadian adults from September 5 to 8. It has a margin of error of +/- 2.5 percentage points, 19 times out of 20.
