MNP Consumer Debt Index: Canadians experiencing financial whiplash as economic uncertainty persists

Three-quarters of Canadians say rising food and gas prices are straining their finances.

CALGARY, AB – April 13, 2026 – Many Canadians are feeling the effects of ongoing economic uncertainty as conditions continue to evolve, reshaping household behaviours. Three in five (61%) say they are experiencing financial whiplash as shifting conditions repeatedly disrupt their financial plans, according to the latest MNP Consumer Debt Index. Nearly three-quarters (74%) say rising prices for essentials like food and gas are straining their finances. Almost three-quarters (73%) say they are cutting back on spending, and over four in five (84%) are more cautious about taking on new debt as ongoing cost pressures and uncertainty drive conservative financial decision-making.

These pressures are also shaping how Canadians view their financial progress and future plans. Three in five (64%) say they feel they are working harder financially but not getting ahead. Seven in 10 (69%) say they are delaying major financial decisions because of unpredictable conditions.

“Many Canadians are not just feeling financial pressure — they are navigating a shifting environment, which increases uncertainty and makes it more difficult to plan, budget, and stay ahead financially,” says Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “Rising costs and broader global uncertainty are outside of an individual’s control, creating a sense of financial whiplash. It becomes harder to absorb unexpected expenses or make confident financial decisions when conditions feel unpredictable, whether that’s taking on new debt, making a large purchase, or planning for the future.”

The overall Index remains unchanged at 87 points, holding steady over the past year and reflecting a continued wait-and-see approach. However, this apparent stability may be masking underlying financial pressures as Canadians continue to navigate an economy where financial challenges persist without a clear endpoint. Canadians’ net personal debt rating increased slightly from the previous quarter to 18 points (+1 pt) but still represents the lowest first-quarter debt rating in the Index’s history. This underscores ongoing financial strain as concerns about job security, inflation, and broader economic conditions continue to weigh on consumer sentiment.

Nearly a quarter of Canadians (24%) say their debt situation has improved compared to a year ago, while one in five (19%) say it has worsened. Both proportions remain unchanged from last quarter. This lack of movement highlights how many Canadians feel stuck with little progress in improving their financial position. Nearly four in 10 (39%, +2 pts) fear job loss in their household as financial pressures persist and concerns about job security continue to rise.

The average amount Canadians have left at the end of the month has risen to an all-time high of $1,000, up from $907 last quarter. However, these gains are not being felt equally across all households. More than four in 10 (43%) report being $200 or less away from financial insolvency each month, up two points from last quarter. Nearly a third (29%, +4 pts) say they do not earn enough to cover their bills and debt payments.

While the Bank of Canada’s recent decision to hold its key rate at 2.25 percent may ease distress for some Canadians, three in five (61%, -3 pts) still say they need interest rates to go down. More than half (53%, -1 pt) fear financial trouble if interest rates rise, and four in 10 (42%, -2 pts) are concerned that rising interest rates could move them toward Bankruptcy. Nearly half (45%, -3 pts) remain concerned about their ability to repay their debts, even if interest rates decline. Only one in five (20%) say they could absorb an additional $130 in monthly interest payments, while nearly a third (32%) say they could not absorb this increase.

“Many Canadians remain uneasy about what comes next, even with interest rates holding steady for now,” says Bazian. “With uncertainty around future interest rates, households already managing tight budgets may have limited capacity to absorb higher borrowing costs or even sustain these costs at current levels.”

These financial pressures are also reflected in how Canadians are approaching tax season.

One in six Canadians (16%) say they expect to owe taxes they are unable to pay. This includes one in 10 (10%) who will delay paying, as they need more time to figure out how they will come up with the funds, and six percent who say they will need to borrow or go into debt to meet their obligations. One in 10 (11%) say they expect to owe taxes and will need to dip into savings or money set aside for other purposes to pay these taxes.

Younger Canadians are particularly affected, with one in five (21%) of those aged 18 to 34 reporting they are unable to pay their expected tax bill and will need to figure out how to pay it or go into debt. This highlights heightened financial strain among the younger demographic.

“Tax season can act as a real test of household finances,” says Bazian. “A refund may offer a chance to catch up on bills or pay down debt for some Canadians. For others, owing money may mean dipping into savings or taking on additional debt, which can add to longer-term financial pressure.”

Bazian says that turning to additional debt to cover expenses and obligations can be an early sign that financial pressures are increasing, and that it may be time to review your financial situation.

“It can be overwhelming when things feel uncertain or out of your control,” says Bazian. “However, it can be helpful to pause and reassess when you find yourself relying more on credit or stretching your finances to keep up with expenses. There are still steps people can take to better understand and manage their finances, no matter what’s happening in the economy. This includes looking at what’s coming in, what’s going out, and where there may be options to ease the pressure.”

“Speaking with a Licensed Insolvency Trustee can provide clarity and reassurance for those who feel uncertain,” Bazian says. “These conversations can help individuals understand their full financial picture in a supportive, non-judgmental environment, so they can explore their options and move forward with a plan that fits their situation.”

Licensed Insolvency Trustees are the only federally regulated debt 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. They work with individuals to understand their unique circumstances and explore a range of solutions, from adjusting payment plans and negotiating with creditors to formal debt relief options.

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-sixth wave, the Index remains at 87 points, unchanged from last quarter. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between March 10 and March 11, 2026. 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 ±2.7 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.