More Ontarians are $200 or less away each month from financial insolvency amid ongoing economic uncertainty

• More than a quarter say they are financially insolvent (27%, +6 pts).
• Households have less left over at month-end on average, reaching the lowest amount among the provinces ($884, -$88).
• More than a third report feeling anxious or stressed about their financial situation (36%).
• Following two interest rate pauses, nearly two-thirds desperately need interest rates to go down (62%, +1 pt).

TORONTO, ON – July 14, 2025 – Two in five Ontarians (43%) report they are $200 or less away from financial insolvency each month, increasing five points this quarter, according to the latest MNP Consumer Debt Index. This includes more than a quarter (27%) who say they are financially insolvent, marking a significant six-point jump. More than a third (36%) of Ontarians report feeling anxious or stressed about their financial situation as the high cost of living and economic uncertainty continue to weigh on households. A quarter (24%) say they feel stalled, having to put their lives on hold.

“Roughly 5.7 million Ontarians say they are close to financial insolvency,” says Caryl Newbery-Mitchell, a Licensed Insolvency Trustee with MNP LTD in Toronto. “Many households are feeling caught between persistent economic pressures and global volatility, with little flexibility to manage any disruptions in income or unexpected expenses. Some are hesitating to move forward with major financial or life decisions as a result.”

Uncertainty and the cost of living are translating into day-to-day financial strain, with a third of Ontarians (32%) reporting they feel stuck living paycheque to paycheque. About a quarter (23%) say they are constantly putting out financial fires as they face one unexpected cost after another. Two in five (40%) say they are feeling more cautious with how they manage their money due to current financial pressures.

“Those treading cautiously — cutting back, deferring major plans, and trying to manage everyday financial demands — may still be struggling to get ahead, even after two interest rate pauses,” says Newbery-Mitchell. “For many vulnerable households, it can feel like they’re constantly putting out financial fires, making it difficult to feel financially stable amid the current uncertainty around costs and income.”

Two in five Ontarians (42%) have reduced discretionary spending, a third (32%) are increasing savings or building emergency funds, and more than a quarter (27%) are prioritizing debt repayment in response to current financial pressures. One in five (21%) Ontarians are putting off important life goals, such as buying a home, starting a family, or changing careers.

Fewer Ontarians this quarter say they are concerned rising interest rates could drive them toward Bankruptcy (34%, -3 pts) after interest rates holding steady twice this year. However, a significant proportion of Ontarians continue to say they desperately need interest rates to go down (62%, +1 pt). Two in five (39%, +1 pt) remain concerned about their ability to repay their debts, even if interest rates decline.

“Anxieties persist around interest rates and debt management even with signs of stabilization,” says Newbery-Mitchell. “For some, the financial damage has already been done after years of high interest rates, elevated costs, and drained savings. There may be some worries about what could still lie ahead.”

A third of Ontarians (35%, +2 pts) expect their debt situation to improve one year from now, and a larger proportion (41%, unchanged) believe it will improve in five years. However, more Ontarians this they expect their debt situation to worsen one year from now, and a similar amount (13%, +4 pts) expect it to worsen in five years. Slightly fewer this quarter believe they will be able to cover all living expenses in the next year without taking on more debt (57%, -2 pts).

Ontarians appear to have lost the modest financial breathing room they had built up in the previous quarter amid high costs of living. The average amount households have left at the end of the month has decreased to $884, down $88 from last quarter — reaching the lowest amount among the provinces. This potentially signals that Ontarians are struggling to maintain a financial buffer as costs remain elevated.

Two in five Ontarians (43%, unchanged) rate their debt situation as excellent, and one in six (16%, unchanged) rate it as terrible, remaining stable since last quarter. This suggests a stall in financial sentiment.

“It appears some households are slipping back after showing signs of progress last quarter — struggling to maintain the small financial cushion they had built up,” says Newbery-Mitchell. “The drop in month-end finances suggests ongoing cost pressures are making it difficult to stay ahead.”

Newbery-Mitchell urges those feeling overwhelmed by debt or financial pressure to speak with a Licensed Insolvency Trustee. Licensed Insolvency Trustees can provide unbiased advice on the full range of debt relief options available and administer personalized solutions to help individuals regain control of their finances.

“Whether you’re missing payments, receiving collection calls, or simply feeling unsure how to move forward, a Licensed Insolvency Trustee can help guide you through your options for debt relief,” says Newbery-Mitchell. “These professionals offer a non-judgmental space to assess your financial situation and explore customized solutions.”

Two in five Ontarians (say they regret the amount of debt they have taken on. A similar proportion (44%, -2 pts) are concerned about their current debt level, remaining relatively consistent with last quarter.

Newbery-Mitchell says it’s a sure sign it’s time to ask for help if financial stress is causing sleepless nights. “You’re not alone — many others are facing similar challenges. Even taking that first step to learn about your options can bring relief. The sooner you reach out, the more options you may have to regain your footing.”

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

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-third wave, the Index has held firm at 88 points – the same level as last quarter. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between June 9 and June 13, 2025. 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 ±2.5 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.