Nearly a third of Saskatchewan and Manitoba residents are starting 2025 already insolvent, unable to pay their bills and debt obligations

• Nearly half are $200 or less away from insolvency (49%, +4 pts).
• Two in five believe they will not be able to cover all their living expenses in the next 12 months without going further into debt (43%, +5 pts).
• A third are not confident in their ability to cope with a job loss or change in wages or seasonal work (34%, +7 pts).

REGINA, SK – January 13, 2025 – Nearly half of Saskatchewan and Manitoba residents are teetering on the edge of financial insolvency heading into 2025, despite declining interest rates. According to the latest MNP Consumer Debt Index, the proportion of Saskatchewan and Manitoba residents (49%) indicating they are $200 or less away from insolvency increased by four points from the previous quarter. Nearly a third say they are already insolvent (30%), jumping a significant 11 points.

“Although the interest rate cuts in 2024 temporarily eased financial pressures, Saskatchewan and Manitoba residents are beginning 2025 with a more negative view of their financial situation,” says Pamela Meger, a Licensed Insolvency Trustee with MNP LTD in Regina. “With household budgets stretched thin and holiday bills coming due, the added layer of economic instability — including potential U.S. tariffs — may be intensifying financial stress.”

This economic uncertainty is reflected in Saskatchewan and Manitoba residents’ pessimistic outlook on their financial future. Significantly more this quarter expect their debt situation will worsen one year from now (16%, +8 pts), while only slightly more anticipate it will improve (30%, +3 pts). Two in five (43%) believe they will not be able to cover all their living and family expenses in the next 12 months without going further into debt, a five-point jump from the previous quarter.

“Many households are already scaling back their spending, reassessing their budgets, and exploring ways to cut costs in response to debt obligations or higher living expenses. However, these efforts may not always be enough to bring lasting relief, even with lower interest rates,” says Meger.

Many Saskatchewan and Manitoba residents are still concerned about their finances and interest rates this quarter, despite consecutive interest rate cuts in 2024. A third (36%, +1 pt) are still concerned about their ability to repay their debts, even if interest rates decline. Nearly a third (32%) are worried that rising interest rates could move them towards Bankruptcy, a four-point increase. Almost three in five (58%, -7 pts) still say they desperately need interest rates to go down.

The financial cushion for many households is eroding as disposable income shrinks, leaving less room to manage unexpected expenses. Saskatchewan and Manitoba residents have $79 less left over at the end of the month on average, decreasing to $673 this quarter.

“With limited financial flexibility, households are increasingly at risk of being caught off guard by unexpected costs or the impacts of shifts in the economy,” explains Meger. “For individuals who are already struggling to make ends meet, even a small disruption can quickly spiral into a more serious financial situation.”

Saskatchewan and Manitoba residents’ ability to absorb an extra $130 in interest rate increases has deteriorated as financial pressures rise. Fewer this quarter (17%, -2 pts) feel much better equipped to handle such an increase, while more (37%, +5 pts) report their ability to handle such an increase has worsened. The possibility of unexpected expenses or changes in circumstances also weighs heavily on Saskatchewan and Manitoba residents, with about a third expressing a lack of confidence in their ability to cope with an unexpected auto repair or purchase (33%, +7 pts). A third also indicate they are not confident in their ability to cope with a job loss or change in wages or seasonal work (34%, +7 pts).

Meger says the convergence of post-holiday bills, economic pressures, and unexpected expenses can exacerbate financial challenges. While the new year is traditionally a time for setting financial goals, some Saskatchewan and Manitoba residents will find themselves grappling with the financial fallout of holiday spending. Seeking support can help address debt concerns early in 2025.

Reaching out for advice from a Licensed Insolvency Trustee is a critical first step for those feeling overwhelmed by debt. Licensed Insolvency Trustees provide free consultations to help individuals assess their financial situation, understand their options, and create customized plans to regain control of their finances.

“This time of year can feel daunting for many as the holiday bills arrive and financial realities set in,” says Meger. “Seeking professional guidance can be a crucial step in turning things around. A conversation with a Licensed Insolvency Trustee can help open the door to potential debt relief solutions, including budgeting strategies, debt management plans, debt consolidation, Consumer Proposals, or Bankruptcy in some cases.”

MNP’s national team of Licensed Insolvency Trustees offers free consultations across the country to help severely indebted Saskatchewan and Manitoba residents 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-first wave, the Index has decreased to 79 points, down 10 points since last quarter to reach the second-lowest score recorded since its inception. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between December 6 and December 17, 2024. For this survey, a sample of 2,003 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.