Nearly half of Albertans fear they may never be debt-free; more than half acknowledge needing help, but are too embarrassed to seek it — all higher than any other province.

• Mounting debt forces bad financial habits: Three in 10 (30%) are paying only the minimum on credit cards, about a quarter have missed payments (27%) or sold personal belongings (25%) to stay afloat — all higher than any other province.
• Nearly half feel the stigma of Bankruptcy prevents them from seeking help (45%, +9pts from 2019) – more than any other province.
• Far more Albertans (40%, +8pts from 2019) say they don’t know how to get out of debt or where to turn for help.

March is Debt Literacy Month, aiming to educate, empower, and break the stigma amid rising consumer debt

CALGARY, AB – March 3, 2025 – Mounting financial pressures are driving Albertans into a cycle of overwhelming debt as stigma and confusion prevent many from seeking help. According to a new survey conducted by Ipsos on behalf of MNP LTD, more than half of Albertans acknowledge they need help to get out of debt (51%), but that they would be embarrassed to seek it out if their financial situation was bad enough to consider Bankruptcy (55%, +1pt from 2019) — both of which are higher than in any other province.

As financial struggles intensify, the launch of Debt Literacy Month this March aims to break down these barriers and provide Albertans with the critical knowledge and trusted resources they urgently need to regain control of their finances.

“Albertans are the most likely to acknowledge the need for debt help and the most reluctant to seek it. For many, debt can feel like a heavy burden they’re carrying alone, leaving them feeling like there’s nowhere to turn,” says Lindsay Burchill, a Licensed Insolvency Trustee with Alberta-based MNP LTD. “Debt Literacy Month aims to address these challenges by breaking down the stigma that prevents many from reaching out. It’s an opportunity for Albertans to gain the knowledge they need to make informed decisions about their finances and free themselves from the cycle of debt.”

Consumer insolvencies in Alberta increased six percent in 2024, according to statistics from the Office of the Superintendent of Bankruptcy, underscoring the growing financial distress among Albertans. Ongoing economic uncertainty, including concerns about trade policies and potential tariffs, could further impact household finances in the months ahead. Rising financial strain emphasizes the need for Albertans to understand their debt relief options and take proactive steps toward financial stability.

The survey reveals that while most Albertans agree there’s no shame in seeking help with debt (82%, -6pts from 2019), a significant gap remains between belief and action. Nearly half (45%) say the stigma of Bankruptcy prevents them from seeking assistance — more than any other province. The nine-point increase since 2019 underscores the critical need to address and dispel the stigma surrounding Bankruptcy and debt help.

“It’s concerning that while most Albertans believe there’s no shame in seeking help for debt issues, many still hesitate to take that first step,” says Burchill. “Financial struggles can happen to anyone — from unexpected health issues to job loss, divorce, or other life events. It’s important to remember you’re not alone and there’s no shame in reaching out for support.”

Despite many acknowledging needing help with their debt, two in three (67%) are deterred by fears of debt-relief scams, while nearly three in four (71%) don’t believe their situation is serious enough to seek debt help. Marking a concerning eight-point jump since 2019, far more Albertans (40%) now admit they don’t know how to get out of debt or where to turn for help, with Albertans and Ontarians being the most likely to admit so among the provinces. About three in five (58%, +1pt from 2019) struggle to trust professional companies to assist them. Nearly half of Albertans (48%) believe they will never be debt-free — also more than any other province.

“While there are resources readily available to Albertans, some may be unsure who to trust or where to go for reputable debt-relief advice,” says Burchill. “It’s best to first speak with a Licensed Insolvency Trustee. They are the only debt professionals regulated by the federal government and authorized to administer both Bankruptcies and Consumer Proposals. Some mistakenly believe they only assist with Bankruptcies, but Licensed Insolvency Trustees can also help individuals avoid Bankruptcy with other options such as debt consolidation, budgeting strategies, and Consumer Proposals.”

Common misconceptions can compound the stigma for many. Albertans are more likely than any other province (45%) to worry that pursuing debt relief could lead them to lose their home, while more than half (57%) are concerned about how Bankruptcy would affect their credit score.

“One of the most persistent myths about Bankruptcy or insolvency is that you’ll automatically lose your home or car — but there are legal protections that can help safeguard these assets,” explains Burchill. “For example, by filing a Consumer Proposal, a person can hold onto their assets, stop interest from piling up, halt wage garnishments and end harassing phone calls from creditors. As long as they maintain the agreed-upon payment plan, they will be on the road to becoming debt-free and on track to begin rebuilding their credit.”

Burchill adds that while individuals often worry about how their credit score would be affected by Bankruptcy, she points out that struggling with overwhelming debt for a prolonged period can also hurt their credit score. After a Bankruptcy or Consumer Proposal, individuals can start over and rebuild their credit score.

While Albertans are torn on seeking help for their debt, they are the most likely of the provinces to be stuck in patterns of financial strain, relying on short-term fixes that ultimately deepen their challenges. Albertans are also the most likely (30%, -3pts from 2023) to have only paid the minimum payment towards the balance on their credit card in the past year. Debts continue to build, as about one-quarter of Albertans have delayed or skipped a bill payment (27%), paid the minimum payment on their line of credit in the last year (22%, +4pts from 2023), or sold their personal belongings to help make ends meet — each, again, more than any other province.

“People often avoid discussing their debt, which delays seeking help,” explains Burchill. “On top of that, the pressure to maintain appearances while struggling financially can lead to more spending and relying on credit. The best way to explore all available debt-relief options is to speak with a Licensed Insolvency Trustee. They offer free, no-obligation consultations and are legally required to provide impartial advice tailored to each person’s unique financial situation.”

For those hesitant to seek help due to stigma, the first step can be as simple as gathering information. MNP offers free Do it Yourself (DIY) debt assessment tools. This online resource empowers Albertans to assess their debt situation and explore potential solutions before contacting a professional for assistance. Additionally, for regular, bite-sized insights about managing personal finances and debt, Albertans can subscribe to the MNP 3 Minute Debt Break Podcast, providing quick, actionable advice to help them better understand their options.

To provide Canadians with access to trustworthy debt advice, MNP’s extensive network of Licensed Insolvency Trustees also offers free consultations in over 200 offices nationwide, delivering personalized, local support, to help Canadians explore their options and start their journey to financial recovery.

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

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.