As Canadians face an increasingly difficult financial landscape, a clear and troubling picture has emerged from one of the country’s most comprehensive surveys of financial wellbeing. The Harris & Partners Financial Resilience Index, built from over 12,000 survey responses collected across multiple national studies, documents how financial strain has crystalized into a full-blown crisis.
The data tells a story of a nation not merely under pressure, but pushed past its limits: working more for less, borrowing to survive, losing sleep, and quietly hiding the consequences from the people closest to them, said the company, adding that the concern is no longer whether Canadians are struggling. It’s whether the system that surrounds them is equipped to respond.
“This data doesn’t just show stress; it shows a nation hitting its limit. When you look across all 12 surveys, the message is unmistakable: Canadians are exhausted, financially overextended, and increasingly unsure how to stay afloat,” said Joshua Harris, CEO & Licensed Insolvency Trustee, Harris & Partners.
Rising Costs, Stagnant Incomes, and a Vanishing Safety Net
At the heart of the Index is a finding both simple and devastating: household incomes no longer match the cost of living for the majority of Canadians, said the report. 57.3% of respondents said their income did not cover basic expenses including rent, food, and bills. That strain has since intensified, with 88.9% living paycheque-to-paycheque and 82.9% cutting back on essentials such as heating and groceries. Rents have climbed across major cities. Heating costs have surged. Food inflation continues to outpace wage growth. Many families find themselves choosing between fresh produce, fuel for the car, or paying bills on time.
“We speak with people every day who are earning more than they ever have in their careers, yet still can’t keep up with grocery bills or rising rents. When the basics become unaffordable, financial resilience doesn’t just erode – it vanishes,” noted Harris.
Borrowing to Survive: Credit, Payday Loans, and Shrinking Options
As affordability has deteriorated, the report said Canadians have increasingly turned to borrowing not to get ahead, but simply to cope:
- 53.4% borrowed in the past two years just to cover essential living costs
- 77.1% could not cover a $500 emergency without taking on debt
- 61.2% used credit in the last year to pay for basic expenses
Among the 569 payday loan users surveyed, the picture is even more acute: 71.4% borrowed for essential expenses, 40.4% for emergencies, and 44% struggled to repay. These are not lifestyle borrowers. These are people whose fridge is empty, or whose rent is due, it said.
Changes to the criminal interest rate caused lenders to tighten criteria, leaving many lower-income households with fewer viable, regulated options.
“People feared turning to unregulated lenders. And based on the conversations we’ve had, that fear was justified. When legal credit tightens in a country with declining financial resilience, people don’t stop borrowing – they just borrow unsafely,” added Harris.
The Emotional Toll: Anxiety, Sleepless Nights, and Shame
Financial strain has not stayed in the spreadsheet. It has moved into bedrooms, relationships, and the working day, according to Harris & Partners:
- 60.4% go to bed worrying about money
- 46% lose sleep because of financial pressure
- 68.4% say their debt makes them anxious
- 56.6% hide their financial struggles from loved ones
- 76.3% said job or financial stress harmed their mental health in the past year
- Nearly 40% say their debt is damaging their relationships
“We’ve entered a period where financial shame is as common as financial stress. People feel embarrassed, or they don’t want to worry their spouse, or they think they should just ‘cope.’ But silent stress is still stress – it eats away at mental health and relationships,” explained Harris.
Families are avoiding conversations. Parents are skipping meals. People are postponing medical appointments because they cannot afford the cost. The consequences are very real, and they are compounding, he said.
Workplace Burnout: Doing More for Less
Beyond the household budget, the Index reveals a parallel crisis in the workplace:
- 58% felt emotionally burned out
- 52.6% said their workload increased without better pay
- 45.1% took on a second job or extra gig work just to get by
- 21.4% took on extra duties with no compensation
- 14.7% worked unpaid overtime
“We’re used to thinking of overtime or extra work as a path to security. It has become a coping mechanism – and even then, it isn’t enough,” said Harris.
A Generation Already Behind: Young Canadians Losing Faith
The Index also highlights an accelerating crisis among students and young adults. More than 60% of graduates reported regretting taking on student debt, and nearly 85% felt the government should do more to address it. With average student debt around $28,000, combined with high rents and starting wages that lag inflation, young Canadians are delaying homeownership, family planning, and even healthcare.
A Supreme Court ruling further complicated relief options, resetting the seven-year bankruptcy discharge period when borrowers return to school, a change that many young Canadians view as yet another barrier on an already difficult path, noted Harris & Partners.
“This generation did everything right. They studied, trained, and worked – yet they’re entering adulthood already behind. When you add high rents and rising consumer prices, it becomes incredibly difficult to build a stable foundation,” said Harris
Insolvencies at Highest Level Since 2009
The financial signals collected across the Index were ultimately borne out in national insolvency data. According to the Office of the Superintendent of Bankruptcy (OSB), consumer insolvencies reached 36,256 in Q3 – the highest level recorded since 2009.
“These filings confirm what the Index has been signalling. Households simply cannot absorb any more financial shocks. The margin is gone,” according to Harris.
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