Albertans face ‘heat or eat’ decisions as financial strain deepens

• Albertans are the most likely among all provinces to say they have reduced their utility consumption (39%, -2 pts YoY), and the most likely to report eating less (33%, -2 pts) to save money.
• Albertans are also the most likely to say they are grocery shopping strategically (67%, +9 pts YoY) and have stopped dining out or ordering takeout (50%, -2 pts).
• Half are within $200 of insolvency each month (50%, +3 pts QoQ), with the average amount left after monthly expenses falling to $813 from $952.
• Albertans are the least likely among the provinces to have six months of emergency savings (41%), leaving many households highly exposed to disruption.
• More than two in five Albertans worry that AI could negatively affect their job or income (45%).

CALGARY, AB – October 6, 2025 – Albertans’ financial vulnerability is intensifying as persistent economic uncertainty, concerns about borrowing costs, and employment anxiety weigh on household confidence. Faced with mounting financial pressure, many indebted Albertans are being forced into difficult “heat or eat” decisions — choosing between necessities such as heating their homes and putting food on the table. According to the latest MNP Consumer Debt Index, Albertans are the most likely among all provinces to have reduced their utility consumption (39%, -2 pts YoY), and to report eating less (33%, -2 pts) to save money. These stark trade-offs reflect the deepening strain on household budgets, particularly as winter heating costs loom.

“We’re seeing more Albertans than anywhere else having to pull back on essentials like meals and utilities like heating,” says Lindsay Burchill, a Licensed Insolvency Trustee with Alberta-based MNP LTD. “That speaks volumes about the level of financial pressure households here are under, and the very real emotional impact that comes with it.”

Beyond heating and food, Albertans are cutting back in other ways and stand out across several measures. They are the most likely (67%) to say they are grocery shopping strategically — using meal plans, bulk buying, coupons and price matching — increasing a significant nine points from the same quarter last year. Albertans also lead in most likely to have avoided impulse purchases (53%, + 5 pts), the only province to see an increase this quarter. Additionally, half (50%, -2 pts) have stopped dining out or ordering takeout, more than any other province. One in five (22%) are also delaying or skipping medical, dental, or prescription care, highlighting how financial strain is increasingly affecting households’ well-being.

Even with these sacrifices, financial cushions are shrinking. Half (50%, +3 pts) of Albertans report they are within $200 of being unable to pay their bills each month. At the same time, the average amount left over after monthly expenses has fallen to $813 from $952.

“A single unexpected bill can tip the balance when there’s so little left at the end of the month,” adds Burchill. “That can result in having to lean on credit with steep borrowing costs, which can quickly spiral out of control. The longer people wait to find support, the fewer options there may be for relief, so it’s important to seek help sooner.”

Job insecurity and AI concerns add to financial strain

A softening job market is keeping Albertans’ confidence in their ability to cope with income disruption at the lowest levels in Canada, with confidence in handling a job loss holding a net negative score of -25 (unchanged). Against this backdrop, more than two in five (45%) worry that artificial intelligence (AI) could negatively affect their job or income.

“Albertans already facing financial strain now see AI adding a fresh layer of uncertainty,” says Burchill. “When people are unprepared for a loss of income, the idea that their jobs could be at risk from AI deepens their sense of vulnerability.”

Less than half (41%) of Albertans report having six months of emergency savings to withstand a disruption – the lowest proportion among the provinces – highlighting just how exposed many households would be if their income were reduced or lost.

Debt pressures persist as Albertans run out of options

Just over a third (37%, +1 pt) of Albertans rate their debt situation as “excellent,” while more than a quarter (26%, +5 pts) describe it as “terrible,” the largest share among all provinces. Although the Bank of Canada held interest rates at 2.75 percent during the survey period and cut to 2.5 percent shortly after, three in five (61%, -5 pts) Albertans said they desperately need rates to go down. More than two in five (45%, -1 pt) said even if rates decline, they remain concerned about their ability to repay debt. Albertans are also the most likely among the provinces (45%, +3 pts) to worry that rising rates in the future could push them toward Bankruptcy. Fewer this quarter (28%, -3 pts) expect their debt situation to improve in the next year, while slightly more (42%, +2 pts) expect improvement over the next five years.

“Lower interest rates may ease the pressure somewhat, but they don’t make the debt itself disappear,” explains Burchill. “Licensed Insolvency Trustees can help Albertans take control of their situation by addressing the debt directly and offering practical options — seeking their guidance shouldn’t be seen as a last resort, but a step toward long-term stability.”

Despite cost-cutting efforts, the report findings suggest households have exhausted their options. A quarter (24%, -3 pts YoY) report having no plans to save more in the next 12 months, and only 14 percent (-1 pt) intend to create or revise a household budget. Alarmingly, significantly more this quarter say they plan on eating less (13%, +7 pts) to save money. A further 10 percent (-5 pts) say they are considering relocating to more affordable housing, and 16 percent (-2 pts) say they plan to reduce utility consumption over the next year — a concerning sign as households head into the winter months, underscoring how entrenched these “heat or eat” trade-offs have become.

“No one should be forced to choose between paying for heat and putting food on the table, yet that is the reality for some Albertans under financial strain,” says Burchill. “For those facing financial challenges, Licensed Insolvency Trustees offer more than just debt solutions — they listen, provide unbiased advice, and help people chart a path forward.”

Licensed Insolvency Trustees provide free, confidential consultations and are the only federally regulated debt professionals authorized to administer consumer proposals and bankruptcies. With more than 200 offices across the country, MNP LTD’s team of Licensed Insolvency Trustees deliver local, personalized and non-judgmental guidance to help Canadians understand their options and take the first step toward lasting financial stability.

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.

Now in its thirty-fourth wave, the Index has fallen by two points from last quarter to 86 points. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between September 4 and September 9, 2025. 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.