Many Atlantic Canadians struggling to choose between heating or eating: report

As the cost of living soars, a growing number of Maritimers are making the difficult decision between heating or eating.

A new survey shows many Atlantic Canadians are having to decide between basic necessities such as heating their homes or putting food on the table.

According to the MNP Consumer Debt Index, 24 per cent of Atlantic Canadians report eating less and 34 per cent have reduced their utility consumption to save money.

The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses and absorb interest-rate fluctuations without approaching insolvency.

“Many Atlantic Canadians are finding that even the basics feel out of reach,” says Tina Powell, a local licensed insolvency trustee with MNP LTD. “When households have to scale back on food, heating, or medical care, it goes far beyond tightening the budget — it becomes about making ends meet at the most basic level, and that reality takes a heavy toll.”

Atlantic Canadians are also reported to be cutting back on other necessities. Around 58 per cent say they are grocery shopping strategically, such as using meal plans, bulk buying, coupons and price matching.

“We’re seeing that people are applying for their power and heat as well so we’re expecting an uptick in the next couple of weeks for emergency assistance support,” said Romaine Rhoden from Parker Street Food and Furniture Bank.

One in five, or 19 per cent, admit they are delaying or skipping medical, dental or prescription care.

“With so many more in the region living just a couple of hundred dollars away from insolvency, there’s almost no room left for error,” adds Powell. “An unexpected bill or higher seasonal costs can push families to lean on expensive credit, and once that cycle begins, the debt can grow quickly.”

The MNP reports a softening job market is also causing concerns for households, with 42 per cent of Atlantic Canadians worrying that artificial intelligence could negatively affect their job or income.

“AI is adding yet another source of worry for Atlantic Canadians already on shaky financial ground,” says Powell. “For those without strong savings, the idea that their job or income could be affected only deepens the sense of vulnerability.”

On top of this, the report shows Atlantic Canadians are concerned about potential job loss or reduction in income due to lack of a financial safety net. Less than 42 per cent report having six months of emergency savings to withstand a disruption.

“I just moved into a place, paid the damage deposit, the rent and then my muffler broke so the rest of my income went to that,” one Halifax resident said. “So it’s been kind of crazy.”

Without these savings, many people living in the region also report an increase in debt. Compared to last quarter, 24 per cent more Atlantic Canadians rate their debt situation as “terrible”, up five points and 37 per cent rate their debt situation as “excellent”, eight points less than last quarter.

Even with the Bank of Canada holding interest rates, nearly 68 per cent say they need rates to go down, more than any other provinces, the MNP reports.

“While lower interest rates might offer some relief, they don’t erase the debt itself,” explains Powell. “That’s where Licensed Insolvency Trustees can step in — not only as a last resort, but as a proactive resource to help people address their debt problems directly and start building stability.”

Despite all the cost-cutting efforts the report findings suggest that households have exhausted their options.