Half of Manitoba and Saskatchewan residents concerned about debt repayment even if rates decline, following two interest rate pauses, as they brace for ongoing economic uncertainty

2025-07-14

schedule6 minute read

Author: Tanya Reynolds

MNP Consumer Debt Index

  • Two-thirds desperately need interest rates to go down (65%, +5 pts).
  • Nearly half fear rising interest rates could drive them toward Bankruptcy, increasing a significant 14 points (46%).
  • A third report feeling anxious or stressed about their financial situation (34%).
  • A quarter feels stalled by financial strain, having to put their life on hold (24%).

Boardwalk Through a Verdant Marshland in Hecla-Grindstone Provincial Park in Manitoba

WINNIPEG, MB – July 14, 2025 – Two-thirds of Manitoba and Saskatchewan residents (65%, +5 pts) say they desperately need interest rates to go down following two consecutive interest rate pauses, according to the latest MNP Consumer Debt Index. Significantly more Manitoba and Saskatchewan residents this quarter say they are concerned rising interest rates could drive them toward Bankruptcy (46%), increasing a considerable 14 points. A significant proportion of Manitoba and Saskatchewan residents are concerned about their ability to repay their debts even if interest rates decline (50%), jumping eight points.

“We are seeing some intensifying fears around interest rates and debt levels,” says Tanya Reynolds, a Licensed Insolvency Trustee with MNP LTD in Winnipeg. “The damage has already been done for some households after years of high interest rates, rising costs, and drained savings — leaving many with deep anxieties about what the future may hold.”

A third (34%) of Manitoba and Saskatchewan residents report feeling anxious or stressed about their financial situation as the cost of living and ongoing economic uncertainty weigh on households. A quarter say they feel stalled, having to put their lives on hold (24%) or are constantly putting out financial fires as they face one unexpected cost after another (25%). Three in 10 Manitoba and Saskatchewan residents (29%) report they feel stuck living paycheque to paycheque. More than a third (37%) say they are feeling more cautious with how they manage their money due to current financial pressures.

“Households haven’t seen this kind of economic uncertainty since the COVID-19 pandemic,” says Reynolds. “Many feel stuck in limbo and unable to move forward as they weigh daily costs against long-term decisions — particularly amid persistent economic pressures and global volatility.”

Nearly half of Manitoba and Saskatchewan residents (45%) have reduced discretionary spending in response to current financial pressures. Manitoba and Saskatchewan residents are the most likely among the provinces (41%) to be increasing savings or building emergency funds. Meanwhile, three in 10 (29%) are prioritizing debt repayment, and a quarter (26%) are putting off important life goals, such as buying a home, starting a family, or changing careers.

“Following two interest rate pauses, many households may still be treading carefully after cutting back, delaying plans, and trying to manage uncertainty around costs and income,” says Reynolds. “For those who are most financially vulnerable, it can feel like they’re putting out one financial fire after another.”

A third of Manitoba and Saskatchewan residents (34%, -11 pts) rate their debt situation as excellent this quarter, dropping a significant 11 points. At the same time, more this quarter rate their situation as terrible (21%, +3 pts).

Significantly fewer Manitoba and Saskatchewan residents this quarter believe they will be able to cover all living expenses in the next year without taking on more debt (54%, -8 pts). Fewer this quarter (34%, -3 pts) expect their debt situation to improve one year from now, and significantly fewer (36%) believe it will improve in five years, dropping seven points. However, fewer this quarter (9%, -5 pts) say they expect their debt situation to worsen one year from now, while a larger proportion (15%, +4 pts) expect it to worsen in five years.

There are signs that some Manitoba and Saskatchewan residents are beginning to regain a modest sense of financial control amid economic uncertainty. The average amount households have left at the end of the month has increased to $1006, up $337 from last quarter. This potentially signals that more Manitoba and Saskatchewan residents are building a financial buffer in case of further economic disruption.

“It’s a positive sign that some households may be starting to rebuild their financial resilience,” says Reynolds. “Even modest progress toward stability matters — especially when so many are on edge in the current climate.”

However, a significant proportion of Manitoba and Saskatchewan residents remain on precarious financial footing.

“Roughly 700,000 people across Manitoba and Saskatchewan say they are living with almost no financial cushion, with little to no ability to absorb unexpected expenses or income disruptions,” says Reynolds.

A third of Manitoba and Saskatchewan residents (33%, -8 pts) report they are $200 or less away from financial insolvency each month. This includes one in six (16%, -10 pts) who say they are financially insolvent. Concern around debt remains elevated despite both these measures improving significantly since last quarter. More than half of Manitoba and Saskatchewan residents (52%, +3 pts) this quarter say they regret the amount of debt they have taken on, and two in five (44%, +4 pts) are concerned about their current debt level.

Reynolds urges those feeling overwhelmed by debt or financial pressure to speak with a Licensed Insolvency Trustee. Licensed Insolvency Trustees can provide unbiased advice on the full range of debt relief options available and administer personalized solutions to help individuals regain control of their finances.

“Whether you’re falling behind on bills, receiving harassing calls from creditors, or don’t know where to turn next, a Licensed Insolvency Trustee can help you understand your situation,” says Reynolds. “They offer non-judgmental guidance, so you can make informed decisions about your debt relief options.”

Reynolds says it’s a sure sign it’s time to ask for help if financial stress is causing sleepless nights. “You’re not the only one feeling overwhelmed. Many are in the same position right now, and even taking the first step to learn about your options can help ease the pressure.”

MNP’s national team of Licensed Insolvency Trustees offers free consultations across the country to help severely indebted Canadians get unbiased debt advice, understand their rights, and determine the best path forward. Licensed Insolvency Trustees are the only federally regulated debt professionals who can assist with all the debt relief options, including Consumer Proposals and Bankruptcy, stop harassment from debt collectors, and discharge people from debt.

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-third wave, the Index has held firm at 88 points — the same level as last quarter. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between June 9 and June 13, 2025. For this survey, a sample of 2,000 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.

Tanya Reynolds

Tanya Reynolds

CIRP, LIT

Senior Vice-President

Servicing: Winnipeg, Winnipeg, Portage la Prairie, Steinbach, Thunder Bay, Kenora

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