MNP 3 Minute Debt Break Oct 2025 Debt Index

As the cold weather sets in, Canadians are feeling it in the air and in their wallets. The latest MNP Consumer Debt Index fell two points to 86, its lowest level for a month of September since 2023, highlighting how vulnerable many households have become. Faced with ongoing economic uncertainty, rising borrowing costs, and growing job insecurity, Canadians are being forced to make tough choices between keeping their homes warm or putting food on the table.

Three in ten say they have cut back on utility expenses to save money, while nearly one in four say they are eating less to make ends meet. This reminds us how deep financial hardship can run. Some households are in such a precarious situation that even basic expenses seem insurmountable.

Even as families try to cope, the pressure continues to mount. Nearly half of Canadians now say they are less than $200 away from being unable to pay their bills each month, a sharp increase from last quarter. The average amount left after expenses has fallen to just $744, with the sharpest declines among young adults and middle-income earners. For those aged 18-34, only $651 remains at the end of the month, leaving little financial breathing room.

Job insecurity and emerging technologies such as artificial intelligence are exacerbating this concern. Confidence in the ability to cope with job loss has declined, and more than 40% of respondents fear that AI threatens their income. This concern is particularly strong among young people and low-income Canadians, many of whom have no savings or financial safety net.

With less than half of Canadians having six months' worth of emergency funds, a single unexpected expense can lead to high-interest debt and emotional exhaustion. When daily expenses force people to choose between heating their homes or putting food on the table, it's not just their finances that suffer, but their peace of mind as well. Licensed insolvency trustees are here to help. MNP offers free, confidential consultations to explore all options, from budget management assistance to consumer proposals and bankruptcy, so Canadians can protect what they have and find a way forward. Relief can start with a simple conversation, because even in the most difficult times, there is always a way forward.

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