MNP Consumer Debt Index shows Albertans are bracing for a challenging 2026

Many Albertans anticipate higher living costs (75%), worsening economy (67%), and interest rate and inflation strain (64%) — among the highest levels across the provinces.

CALGARY, AB – January 12, 2026 – Albertans are bracing for rising financial challenges in 2026, with three in four (75%) expecting the cost of living to worsen — among the highest levels across the provinces. According to the latest MNP Consumer Debt Index, this pessimism extends well beyond prices, reflecting a broader sense that economic conditions will deteriorate.

“There is a strong expectation across Alberta that household finances will be stretched further in the coming year, amplifying concerns about economic stability,” says Lindsay Burchill, a Licensed Insolvency Trustee with Alberta-based MNP LTD. “Many Albertans anticipate continued pressure on daily expenses in 2026, as inflation, interest rates, and broader economic uncertainty weigh on household finances.”

Two in three Albertans believe the economy overall will worsen (67%) this year, and three in five expect rising pressure from interest rates and inflation (64%), both among the highest levels across all provinces. Albertans also anticipate housing affordability will deteriorate (57%) and expect rising pressure from unemployment and the job market (55%) and Canada’s relationship with the U.S. (51%). Albertans are the most likely among those in all provinces to expect transportation (59%) and healthcare costs (54%) to worsen. Three in five also anticipate higher taxes (58%) and express concerns about rising poverty and inequality (61%). Residents of Alberta (71%) and B.C. (70%) are united on the government deficit worsening in 2026.

While Albertans are pessimistic about the year ahead, there is some cause for optimism. Nearly two in five Albertans (38%) report being $200 or less away from financial insolvency each month, down 12 points from last quarter and the lowest level measured in the post-pandemic period. The average amount Albertans have left at the end of the month has risen to $1,119, up $306 since last quarter — the largest increase amongst the provinces. Significantly more Albertans this quarter (52%, +11 pts) report having six months of emergency savings. However, nearly half of Albertans still lack this financial buffer, leaving many households vulnerable to disruption.

“Prolonged financial pressure is driving both action and disengagement across Alberta,” says Burchill. “How Albertans respond to financial stress often hinges on whether they feel they have any flexibility in their budget to work with. Additional room enables some households to make budget adjustments and seek support. Persistent economic uncertainty continues to reinforce avoidance behaviours for others.”

Albertans are responding in markedly different ways as financial pressures intensify. More than half (55%) are adopting a fight mentality, taking proactive steps such as adjusting their budgets (42%), attempting to consolidate debt (13%), or seeking advice from a financial professional (8%). However, nearly a third of Albertans (32%) are taking a flight response, which includes avoiding thinking about their financial responsibilities (13%), steering clear of financial discussions with family or professionals (10%), or relying on credit to cover essential expenses (17%). One in 10 (11%) say they feel financially frozen, unsure where to begin when facing financial stress.

“Financial flight behaviours can create a misleading sense of short-term relief,” says Burchill. “Avoiding bills or financial conversations, or leaning more heavily on credit, may reduce stress temporarily, but those behaviours often allow financial problems to grow quietly. This can make it harder to regain control later on.”

Interest rates remain a critical source of stress for Albertans, despite the Bank of Canada holding its last policy interest rate at 2.25 percent. Nearly two in three (65%, +4 pts) say they desperately need interest rates to go down. Nearly half (46%, +1 pt) remain concerned about their ability to repay their debts, and two in five (41%, -4 pts) fear that rising interest rates could drive them toward Bankruptcy.

“While Albertans report some improvement in their own financial position, confidence about the year ahead remains fragile, especially for those carrying higher levels of debt,” says Burchill. “Ongoing affordability pressures and borrowing costs leave very little margin for error as households head into 2026.”

Relatively few Albertans are turning to professional support when facing financial stress, despite widespread concerns about costs, debt, and the year ahead. Less than one in 10 Albertans (8%) say they have sought advice from a professional as part of their efforts to fight back against financial strain.

These findings echo a recent joint consumer alert from the Office of the Superintendent of Bankruptcy (OSB) and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). This alert highlighted how stress and stigma can prevent Canadians from asking for help and delay access to guidance from Licensed Insolvency Trustees.

“Too many Albertans are still trying to deal with financial stress alone,” says Burchill. “Licensed Insolvency Trustees can help people gain clarity on their debt relief options, make informed choices, and prevent financial strain from becoming more severe.”

Licensed Insolvency Trustees are the only federally regulated professionals in Canada who can assist with all the debt relief options, including Consumer Proposals and Bankruptcy, stop harassment from debt collectors, and discharge people from debt.

“Not all debt advice is the same. That’s something many people don’t realize,” says Burchill. “Financial stress can make people more vulnerable to misinformation or promises of quick fixes. Seeking help from a federally regulated professional such as a Licensed Insolvency Trustee will ensure individuals receive objective guidance that reflects their full financial situation.”

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.

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-fifth wave, the Index has increased to 87 points, up one point from last quarter. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between November 28 and December 1, 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 ±2.7 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.