Canadians are increasingly being forced to make difficult financial trade-offs as household budgets come under mounting strain, according to the latest MNP Consumer Debt Index.
The report, conducted by Ipsos on behalf of MNP LTD, shows the Index fell two points this quarter to 86—its lowest September reading since 2023. Economic uncertainty, rising borrowing costs and employment concerns are contributing to Canadians’ growing financial vulnerability.
“Some households are stretched so thin that even basic expenses feel overwhelming,” said Grant Bazian, president of MNP LTD.
“When people are cutting back on food, heat, or medical care, it’s not just about budgeting anymore — it’s about day-to-day survival. That level of strain takes a huge emotional toll.”
According to the data, three in 10 Canadians (29 per cent) have reduced utility consumption, while nearly a quarter (24 per cent) report eating less to save money. More than half (51 per cent) say they are grocery shopping strategically by using meal plans, bulk buying, coupons and price matching.
Other cutbacks include avoiding impulse purchases (45 per cent), reducing dining out or takeout (41 per cent), and delaying or skipping medical, dental or prescription care (19 per cent).
Nearly half of Canadians (48 per cent) report they are within $200 of being unable to meet their monthly bills—a six-point increase from the previous quarter. The average amount left over after expenses has dropped to $744, down from $916. Younger adults and middle-income earners are experiencing the steepest declines, with those aged 18 to 34 left with $651 on average, and earners between $60,000 and under $100,000 averaging $727, explained MNP.
“Canadian households are now left with so little at the end of the month that even a small, unexpected expense can push them into relying on high-interest credit,” said Bazian. “That’s when debt can quickly spiral and become unmanageable. We’re hearing from people who feel they’ve run out of options — and letting things go too long only makes finding relief harder.”
The report also highlights growing employment anxiety. Confidence in Canadians’ ability to cope with job loss has fallen by four points, while 44 per cent are concerned that artificial intelligence (AI) may negatively impact their job or income. Concern is highest among younger Canadians aged 18 to 34 (56 per cent) and those earning under $40,000 annually (49 per cent).
“It’s concerning that so many Canadians see their jobs and income at risk from AI, especially when most already feel financially vulnerable and lack the safety nets to withstand a disruption,” said Bazian. “For younger Canadians and those earning less, the anxiety is even greater — many already have limited savings to fall back on, which means AI isn’t just a future threat, it feels like a very real risk to their livelihoods today.”
Less than half of Canadians (46 per cent) report having six months of emergency savings to cover a financial disruption.
MNP’s net personal debt rating has also fallen to its lowest September level since 2023, dropping three points to +18. Only 37 per cent of Canadians describe their current debt situation as “excellent,” while 19 per cent say it is “terrible.” Even with the Bank of Canada reducing interest rates from 2.75 per cent to 2.5 per cent shortly after the survey period, 63 per cent said they desperately need rates to come down further.
“For Canadians who are already carrying significant debt, lower rates aren’t enough to turn things around,” said Bazian. “The reality is that relief from interest rates can be temporary, but financial stress lingers if the underlying debt is still there. Seeking help from a Licensed Insolvency Trustee isn’t a last resort — it’s a smart step that can help people regain control sooner and avoid long-term damage.”
Many Canadians are taking few proactive steps to improve their financial position. Three in ten (30 per cent) say they have no plans to save more in the next year, and only 15 per cent plan to create or revise a household budget. Others report considering further cost-cutting, including relocating to more affordable housing (10 per cent), eating less (10 per cent), or reducing utility usage (12 per cent).
“When everyday costs start forcing people to choose between keeping the heat on or putting food on the table, it’s not just finances that suffer — it’s peace of mind,” sais Bazian. “Licensed Insolvency Trustees don’t just solve debt — they listen, help protect what you still have, and map out the options you maybe didn’t even know exist. Even in overwhelming moments, there’s a path forward.”
The data was collected between Sept. 4 and Sept. 9, 2025, through a survey of 2,001 Canadian adults conducted by Ipsos. The results are accurate to within ±2.5 percentage points, 19 times out of 20.
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