Debt Literacy Month: More than two in five Albertans regret their debt as persistent debt blind spots leave many financially vulnerable

Five years of national data show financial resilience remains constrained, with debt literacy challenges leaving many Albertans vulnerable to financial shocks and the long-term impact of borrowing costs.

CALGARY, AB – March 2, 2026 – Five years of national tracking data, compiled by Ipsos on behalf of MNP LTD, show that debt concern remains elevated, financial preparedness remains fragile, and gaps in debt literacy continue as financial pressures persist.

Nearly half of Albertans (45%, +1 pt vs. 2020) say they are concerned about their current level of debt. More than two in five (44%, +4 pts vs. 2020) regret the amount of debt they have taken on. Confidence in long-term financial stability has strengthened modestly compared to five years ago, although only about half of Albertans (55%, +6 pts vs. 2020) believe they will be debt-free in retirement.

While borrowing has become more common amid cost-of-living pressures, many Albertans remain unclear on how interest works in practice and how rate changes affect their financial position. About one in five Albertans (19%, -5 pts vs. 2020) say they do not have a solid understanding of how interest rate increases impact their financial situation. This indicates that while there has been modest improvement over five years, significant knowledge gaps remain.

“The results reinforce the need for stronger debt literacy in Alberta. Knowing what you owe is only part of the picture. Having a practical understanding of compounding interest, how sensitive household finances are to rate changes, and contingency planning is increasingly important in the current economic landscape,” says Lindsay Burchill, a Licensed Insolvency Trustee with Alberta-based MNP LTD. “The long-term effects of interest can build gradually. Interest can accumulate in the background over several years, and even relatively small rate increases can create added pressure. What seems manageable at first can steadily lengthen repayment periods and increase the overall cost of debt.”

MNP is marking Debt Literacy Month this March with a focus on debt blind spots, helping Albertans better understand where their financial vulnerabilities exist, how quickly circumstances can change, and why planning for unexpected life events matters.

“Unexpected life events often act as the turning point that either introduces debt or pushes someone further into debt. Debt literacy helps people recognize early pressure points, think more critically about the implications of relying on credit, and explore their options before financial strain becomes more severe,” says Burchill.

Overall confidence in handling unexpected life events remains fragile compared to five years ago, as persistent debt blind spots leave households vulnerable when unexpected income loss or expenses occur. The most recent data shows that Albertans recorded negative confidence scores for almost all unexpected life events tested. While a few scenarios have seen modest improvement since 2020, others have declined, and overall preparedness remains weak. This suggests that many of the same risk-readiness blind spots persist today. Confidence levels remain low or only marginally positive even in categories that have improved slightly.

Source: Ipsos on behalf of MNP LTD

Caption: In a side-by-side comparison of 2020 and 2025, Albertans’ net confidence in coping financially with unexpected life events remains weak across most categories, with only one scenario edging slightly into positive territory.

Sudden financial shocks such as paying for someone’s education (-16%, +1 pt vs. 2020), the death of an immediate family member (-12%, -4 pts vs. 2020), an illness preventing work for at least three months (-8%, -4 pts vs. 2020), relationship changes such as divorce or separation (-3%, -5 pts vs. 2020), and job loss (-1%, +2 pts vs. 2020) all showed vulnerability. Unexpected auto repairs or vehicle purchase (+1%, +2 pts vs. 2020) was the only scenario to increase slightly into positive territory.

Taken together, the findings suggest that while Albertans recognize these risks, many have low confidence in their ability to absorb them in practice, particularly in today’s higher-cost environment.

“Changes in personal circumstances can strain finances quickly, particularly for households already using credit to bridge everyday expenses,” says Burchill. “Relationship breakdowns and income disruption, including job loss, are common drivers of debt challenges becoming more serious. Seeking professional advice early gives individuals the clarity they need to evaluate their options and take action before financial pressures escalate.”

Gaps in debt literacy, such as how interest rate increases impact personal finances, can compound financial risk over time. This can make it harder to stay prepared for unexpected life events. When people underestimate how quickly interest adds to their balances, a sudden life shock can turn manageable debt into something more difficult to handle.

“Misunderstanding interest can lead individual to underestimate how rapidly balances can grow, rely too heavily on minimum payments, or delay asking for help until the situation has worsened further,” says Burchill. “Making only minimum payments can extend debt repayment for many years and significantly increase the total interest paid. It’s easy for individuals to misjudge how serious the situation is becoming when the long-term impact of compounding interest isn’t fully recognized. That’s why having access to objective, unbiased guidance about their financial situation can make a meaningful difference.”

Closing debt blind spots and finding the right support

1. Calculate the true cost of your debt, not just the balance.
   Do not focus only on what you owe today. Use an amortization calculator to determine how much interest you will pay over time, especially if you are making only minimum payments.
2. Stop relying on minimum payments as a strategy.
   Minimum payments often extend repayment for years or even decades. Paying more than the minimum whenever possible helps reduce the long-term impact of compounding interest.
3. Build a financial buffer.
   Start with a goal of one month of essential expenses. Even small emergency savings can reduce reliance on high-interest credit during unexpected events.
4. Review your repayment timelines, interest rate type, and exposure.
   Revisit your debt plan each year to ensure you remain on track and are not drifting further from repayment due to compounding interest. Know which debts are variable, fixed, promotional, or nearing the end of an introductory period. Blind spots often arise when low rates expire.
5. Use free assessment tools to benchmark your situation.
   If you are hesitant to seek in-person advice, start with objective tools to evaluate whether your current repayment path is sustainable. Free online Do-It-Yourself debt assessment tools allow users to better understand their situation.
6. Separate lifestyle normalization from financial reality.
   Borrowing may feel common, but that does not make it low risk. Normalize reviewing your debt regularly rather than carrying it indefinitely.
7. Create a written ‘what if’ plan.
   Outline how you would respond to job loss, illness, or a major expense. Having a plan in place reduces reactionary borrowing decisions.
8. Seek guidance from a Licensed Insolvency Trustee.
   Licensed Insolvency Trustees are the only federally regulated 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. In many cases, they help indebted individuals explore alternatives to Bankruptcy and regain financial stability. This often includes clarifying how interest compounds over time, how minimum payments affect overall balances, and realistic timelines for becoming debt-free.
9. Do not wait until the situation feels urgent.
   Many people delay seeking help until financial pressure feels overwhelming. Speaking with a Licensed Insolvency Trustee early typically means more available options and greater flexibility. Life shocks such as job loss, illness, or relationship changes can occur without warning. Having a conversation with a Licensed Insolvency Trustee sooner can help prevent a temporary setback from becoming a long-term financial crisis.

“Connecting with a Licensed Insolvency Trustee can be an important first step when debt starts to feel overwhelming,” says Burchill. “We review the full financial picture, help individuals assess what makes sense in their circumstances, and work with them to create a clear, realistic plan that supports long-term financial stability.”

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 Survey

Now in its thirty-fifth wave, this tracking, which has been conducted since 2017, measures Canadians’ attitudes toward their consumer debt, confidence in managing household finances, and aspects of their debt literacy. The survey provides evidence-based insights that support broader efforts to improve debt literacy. This includes identifying gaps in understanding, determining where financial vulnerabilities may exist, and helping Canadians better understand and manage their household debt.

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.