MNP Consumer Debt Index

Low interest rates and rising costs leading many Canadians down ever-riskier path to borrow more

The latest MNP Consumer Debt Index raises red flags about Canadians’ plans to borrow more – and in potentially riskier ways – to make ends meet or finance their purchasing habits over the next few months.

Six in 10 (58%) are at least somewhat likely to borrow more before the end of this year, including nearly four in 10 (37%) who say they’re inclined to use a credit card that already carries a balance. Buy now, pay later (BNPL) options which have boomed alongside the pandemic-induced spike in online shopping and financial instability will likely be the method of payment for one in five (22%) Canadians this fall. Around the same number (22%) are looking at purchase finance options, and one in 10 (9%) are considering a payday loan.

Details behind MNP’s Consumer Debt Index, along with media coverage and our provincial and national news releases can be found below. To view data from previous releases of the MNP Consumer Debt Index, visit our Historical Data page.

Debt Index Results for October 2021

Press Releases

• National: Low interest rates and rising costs leading many Canadians down ever riskier path to borrow more
• B.C.: Low interest rates and rising costs leading many British Columbians down ever riskier path to borrow
• Ontario: Low interest rates and rising costs leading many Ontarians down ever riskier path to borrow more
• Saskatchewan: Low interest rates and rising costs leading many Saskatchewan and Manitoba residents down ever
• Alberta: Low interest rates and rising costs leading many Albertans down ever riskier path to borrow more
• Nova Scotia: Low Interest rates and rising costs leading many Nova Scotians down ever riskier path to borrow more
• New Brunswick: Low Interest rates and rising costs leading many New Brunswickers down ever riskier path to
• Newfoundland: Low Interest rates and rising costs leading many Newfoundlanders down ever riskier path to borrow
• Prince Edward Island: Low Interest rates and rising costs leading many Prince Edward Islanders down ever riskier path to
• Manitoba: Low interest rates and rising costs leading many Manitoba and Saskatchewan residents down ever
• Quebec: Low interest rates and rising costs leading many Quebecers down an ever riskier path to borrow more

Download the MNP Consumer Debt Index infographic.

About MNP LTD

MNP LTD, a division of the national accounting firm MNP LLP, is the largest insolvency practice in Canada. For more than 50 years, our experienced team of Licensed Insolvency Trustees and advisors have been working with individuals to help them recover from times of financial distress and regain control of their finances. With more than 240 offices from coast-to-coast, MNP helps thousands of Canadians each year who are struggling with an overwhelming amount of debt. Visit MNPdebt.ca to contact a Licensed Insolvency Trustee or use our free Do it Yourself (DIY) debt assessment tools. For regular, bite-sized insights about debt and personal finances, subscribe to the MNP 3 Minute Debt Break Podcast.

About the MNP Consumer Debt Index

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. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.

The Index has dipped by two points since last quarter to 95 points, having remained steadily below the established benchmark of 100 points for the last two years.

The latest data, representing the eighteenth wave of the MNP Consumer Debt Index, was compiled by Ipsos on behalf of MNP LTD between September 3-7, 2021. For this survey, a sample of 2,001 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.