Financial anxiety is gaining ground

The economic news may be encouraging, but financial anxiety is gaining ground in the cottages. Now, half of the population of Quebec (48%) experiences it at a moderate or extreme level. Including all levels of anxiety, the proportion jumps to 86%. This is far too much in a country supposed to offer an adequate standard of living.

This anxiety must be taken seriously, because it is not without consequences. It affects mental health. It can result in sleep problems and a lack of concentration at work, two effects often mentioned by those mainly concerned.

Money problems also encourage quarrels. More than half (56%) of people in poor financial position mention that their situation caused family conflict or tension in the 14 days preceding the survey. The data comes from a study carried out by Léger for Centraide of Greater Montreal among 2002 adults, in February. The results will be revealed this Tuesday.

There is a lot of talk these days about incivility and rudeness. The people have a shorter fuse. He can’t endure anything anymore. Could it be that financial anxiety exacerbates the phenomenon? I don’t see how we can stay calm when we wonder if we will be able to find accommodation on the 1st^er July or fill your fridge all month.

Moreover, an organization that offers food assistance hired a mental health worker to provide services to its clients, Claude Pinard, CEO of Centraide of Greater Montreal, told me. “We have food banks which, like Swiss army knives, add skills that are not their core skills. We see that. »

In the last year, inflation has slowed significantly, especially in supermarkets. The job market in Quebec remains more vigorous than in the other provinces, with the exception of Manitoba. Interest rates should soon begin to fall.

However, over the past 18 months, the proportion of Quebecers experiencing financial anxiety has jumped 6 points, from 42% to 48%. This constant increase, in a relatively favorable economic context, worries Claude Pinard, who sees the consequences daily on the ground.

Léger tells us that young people aged 18 to 34 are the most affected by anxiety (65%). Everything about housing affects them. No less than 56% fear being ousted. Among those aged 35-54, 67% are worried about never being able to access property.

We also observe a major gap between Montreal and Quebec. In the metropolis, 49% of the population suffers from financial anxiety, compared to “only” 38% in the capital, which could be explained by the composition of their respective populations.

The same kind of gap is observed between women (50%) and men (41%). Between parents (61%) and adults without children (42%).

Of course, anxiety is higher in groups described as “vulnerable”, which includes racialized people, newcomers, the unemployed, people with functional limitations or no post-secondary education, among others. “It’s increasingly difficult for those who are one bad luck away from being on the street,” notes Christian Bourque, executive vice-president at Léger.

The multiplier effect of the housing crisis is merciless.

Two examples among others. Abused women are unable to move, which plunges them into unbearable stress. Those who pay too much for housing need donations for food, either for the first time in their lives, or earlier than before, on the 10th of the month instead of the 25th. “Before, food banks were was troubleshooting, relates Claude Pinard. Now it’s part of the strategy to feed the family. »

While community housing and food organizations struggle to keep up with demand, Licensed Insolvency Trustees (LITs) are busier.

In Jean Fortin’s offices, the telephone has been ringing more since January. “We hear a lot of panic from people who are feeling the impact of the cost of rent and food,” he notes. Auto loans complete a trio that weighs heavily on finances and causes over-indebtedness.

“It’s clear that people are more miserable than before,” analyzes Jean Fortin.

Microloans of $1000 or $1500 “at 100% interest when you include the commission” are commonplace, observes the trustee, who speaks of a “scourge”. Very often, there are “four or five” per file he handles. He is also increasingly seeing more substantial loans (around $20,000) obtained from private non-bank lenders.

SAI Jean Gagnon, of BDO Canada, is surprised by the increased use of microloans, even among those who have a completely decent income. “It’s an endless spiral, a bottomless pit. » An important warning which also reminds us that the rules concerning this type of loan would quickly need to be tightened.