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

Many Ontarians anticipate higher living costs (72%), rising housing pressure (59%), worsening economy (58%), interest rate and inflation strain (52%), and job market weakness (54%).

TORONTO, ON – January 12, 2026 – Ontarians are bracing for rising financial challenges in 2026, with the majority (72%) 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 an expectation across Ontario that household finances will face added pressure, contributing to ongoing concern about economic security over the year ahead,” says Caryl Newbery-Mitchell, a Licensed Insolvency Trustee with MNP LTD in Toronto. “Many Ontarians expect more financial strain across daily expenses in 2026 rather than improvement.”

Nearly six in 10 Ontarians believe the economy overall will worsen (58%) this year, and the same proportion expect housing affordability to deteriorate (59%). Ontarians also anticipate rising pressure from interest rates and inflation (52%), unemployment and the job market (54%), and Canada’s relationship with the U.S. (52%). Three in five anticipate higher taxes (59%), and about half expect transportation (53%) and healthcare costs (46%) to worsen. The majority also express concerns about rising poverty and inequality (62%) as well as worsening government deficit and debt (66%).

While Ontarians are pessimistic about the year ahead, there is some cause for optimism. Two in five Ontarians (40%) report being $200 or less away from financial insolvency each month, down 10 points from last quarter. The average amount Ontarians have left at the end of the month has risen to $908, up $183 since last quarter. More Ontarians (49%, +5 pts) report having six months of emergency savings this quarter. However, about half of Ontarians still say they don’t have six months of emergency savings, leaving many households vulnerable to disruption.

“Prolonged financial pressure is leading to both action and hesitation among Ontarians,” says Newbery-Mitchell. “How Ontarians respond to financial stress often depends on whether they feel they have any flexibility to work with. Additional room allows some to make budget adjustments and explore options to manage their debt. Ongoing economic uncertainty continues to reinforce debt avoidance for others.”

Ontarians are responding in markedly different ways as financial pressures intensify. Nearly three in five (58%) are adopting a fight mentality, taking proactive steps such as adjusting their budgets (42%), attempting to consolidate debt (10%), or seeking advice from a financial professional (11%). However, nearly three in 10 Ontarians (28%) are taking a flight response, which includes avoiding thinking about their financial responsibilities (12%), steering clear of financial discussions with family or professionals (14%), or relying on credit to cover essential expenses (19%). More than one in 10 (13%) say they feel financially frozen, unsure where to begin when facing financial stress.

“Financial flight mode can create a false sense that things are under control, particularly when people believe their situation is starting to improve,” says Newbery-Mitchell. “Putting off bills, conversations about money, or relying more heavily on credit may ease stress temporarily, but those behaviours often allow financial problems to quietly build. This can make it more difficult to regain control in the future.”

Interest rates remain a critical source of stress for Ontarians, though pressure has eased somewhat this quarter as the Bank of Canada held its last policy interest rate at 2.25 percent. Three in five (61%, -2 pts) say they desperately need interest rates to go down. More than two in five (43%, -3 pts) remain concerned about their ability to repay their debts, and two in five (39%, -4 pts) fear that rising interest rates could drive them toward Bankruptcy.

“Even as some Ontarians report modest improvement in their financial situation, confidence about the year ahead remains fragile for those carrying higher levels of debt,” says Newbery-Mitchell. “For these households, ongoing affordability pressures and sensitivity to borrowing costs leave very little room for error as they look toward 2026.”

Relatively few Ontarians are turning to professional support when facing financial stress, despite widespread concerns about costs, debt, and the year ahead. Slightly more than one in 10 Ontarians (11%) 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.

“Many Ontarians continue to struggle with financial stress alone. Licensed Insolvency Trustees are regulated professionals who can help them gain clarity on their debt relief options, make informed decisions, and prevent financial challenges from becoming more severe,” says Newbery-Mitchell.

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.

“Many people may not realize that not all debt advice is the same,” says Newbery-Mitchell. “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 Ontarians receive unbiased guidance that reflects their unique 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.