MNP Consumer Debt Index shows British Columbians are bracing for a challenging 2026

British Columbians are the most likely among the provinces to anticipate job market weakness (62%), while also expecting higher living costs (73%), rising housing pressure (60%), and a worsening economy (61%).

VANCOUVER, BC – January 12, 2026 – British Columbians are bracing for rising financial challenges in 2026, with seven in 10 (73%) expecting the cost of living to worsen. 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 B.C. that household finances will face added strain in the year ahead, heightening concern about economic security,” says Linda Paul, a Licensed Insolvency Trustee with MNP LTD in the Lower Mainland. “For many British Columbians, the outlook for 2026 is being shaped not only by rising living costs, but also by growing concern about job security, making day-to-day life feel more financially uncertain.”

Three in five British Columbians believe the economy overall will worsen (61%) this year. British Columbians are the most likely among those in all the provinces to believe that unemployment and the job market (62%) will worsen. They are also the most likely to express concerns about rising poverty and inequality (66%). Three in five expect housing affordability to deteriorate (60%), and about half anticipate rising pressure from interest rates and inflation (50%), as well as Canada’s relationship with the U. S. (52%). Approximately half anticipate higher taxes (54%), and about half expect transportation (56%) and healthcare costs (47%) to worsen. Residents of B.C. (70%) and Alberta (71%) are united on government deficit and debt worsening in 2026.

While British Columbians are pessimistic about the year ahead, there is some cause for optimism. The average amount British Columbians have left at the end of the month has risen to $1,025, up $209 since last quarter. While these gains point to modest financial relief, nearly half of British Columbians (45%) report being $200 or less away from financial insolvency each month, a one-point increase from last quarter. Nearly half (49%, -3 pts) report having six months of emergency savings, leaving many households still vulnerable to disruption.

“Prolonged financial pressure is driving both decisive action and avoidance behaviours across the province,” says Paul. “How British Columbians respond to financial stress often depends on whether they feel they have any flexibility to work with. Additional room makes it possible for some to adjust and pursue solutions. Continued economic uncertainty reinforces avoidance behaviours for others.”

British Columbians are responding in markedly different ways as financial pressures intensify. Nearly three in five (59%) are adopting a fight mentality, taking proactive steps such as adjusting their budgets (41%), attempting to consolidate debt (9%), or seeking advice from a financial professional (13%). However, nearly two in five British Columbians (38%) are taking a flight response, which includes avoiding thinking about their financial responsibilities (14%), steering clear of financial discussions with family or professionals (15%), or relying on credit to cover essential expenses (15%). British Columbians are more likely than those in any other region (22%) to say they feel financially frozen, unsure where to begin when facing financial stress.

“Financial flight mode can create a misleading sense of short-term relief, particularly when people believe their situation may be improving,” says Paul. “Relying on credit or avoiding bills or conversations about money may ease stress in the moment, but those behaviours often allow financial problems to worsen quietly. This can make it harder to regain control further down the road.”

Interest rates have become an increasingly critical source of stress for British Columbians, despite the Bank of Canada holding its last policy interest rate at 2.25 percent. Just over three in five (63%, +3 pts) say they desperately need interest rates to go down. Half (51%) remain concerned about their ability to repay their debts, increasing a significant 12 points since last quarter. Nearly half (47%, +4 pts) fear that rising interest rates could drive them toward Bankruptcy.

“Even where British Columbians see some slight easing in their debt situation, confidence about the year ahead remains fragile, especially among those carrying higher levels of debt,” says Paul. “Ongoing affordability pressures and sensitivity to interest rates leave very little margin for error as households look ahead to the coming year.”

Relatively few British Columbians are turning to professional support when facing financial stress, despite widespread concern about costs, debt, and the year ahead. Just over one in 10 British Columbians (13%) 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 British Columbians are still trying to manage financial stress alone,” says Paul. “Licensed Insolvency Trustees are regulated professionals who can help individuals gain clarity on their debt relief options, make informed decisions, and prevent financial strain from worsening.”

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.

“People may not realize that not all debt advice is the same,” says Paul. “Financial stress can make individuals more vulnerable to misinformation or quick-fix promises. Turning to a federally regulated professional such as a Licensed Insolvency Trustee helps ensure British Columbians receive objective advice that looks at their full financial circumstances.”

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.