Nearly Half of Ontarians fear they may never be debt-free; acknowledge needing help, but more than half are too embarrassed to seek it

• Mounting debt forces bad financial habits: A quarter are paying only the minimum on credit cards (28%) or have taken on more credit card debt (25%); one in five have missed payments (23%) or sold personal belongings (21%) to stay afloat.
• Two in five feel the stigma of Bankruptcy prevents them from seeking help (44%, +12pts from 2019).
• Far more Ontarians (40%, +9pts from 2019) say they don’t know how to get out of debt or where to turn for help.
• Two in three are deterred by fears of debt-relief scams (68%) — more than any other province.

March is debt literacy month, aiming to educate, empower, and break the stigma amid rising consumer debt

TORONTO, ON – March 3, 2025 – Mounting financial pressures are driving Ontarians 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, nearly half of Ontarians (49%) acknowledge they need help to get out of debt. Yet more than half (52%) say they would be embarrassed to seek help if their financial situation was bad enough to consider Bankruptcy — a significant seven-point increase since 2019.

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

“For many, it can feel like there’s nowhere for them to turn. Dealing with debt can feel very isolating,” says Caryl Newbery-Mitchell, a Licensed Insolvency Trustee with MNP LTD in Toronto. “Debt Literacy Month is all about providing individuals with the knowledge and resources needed to break down the barriers of stigma, make well-informed financial decisions, and ultimately find a path out of debt.”

Consumer insolvencies in Ontario increased by 17.8 percent in 2024, according to statistics from the Office of the Superintendent of Bankruptcy, underscoring the growing financial distress among Ontarians. Ongoing economic uncertainty, including concerns about trade policies and potential tariffs, could further impact household finances in the months ahead. With rising financial strain, Ontarians need to know their debt relief options and take proactive steps toward financial stability.

The survey reveals that while most Ontarians agree there is no shame in seeking help with debt (83%, -4pts from 2019), a significant gap remains between belief and action. Two in five (44%, +12pts from 2019) say the stigma of Bankruptcy prevents them from seeking assistance. The 12-point increase highlights the critical need to address and dispel the stigma surrounding Bankruptcy and debt help.

“Despite widespread agreement among Ontarians that there is no shame in seeking debt help, it’s troubling that many still aren’t willing to take action due to the stigma of Bankruptcy,” says Newbery-Mitchell. “Challenges such as job loss, health issues, or relationship breakdowns can affect anyone’s finances. Reaching out for support is an important first step to overcoming them. It’s important to remember you are not alone, and there is no shame in reaching out for the help you need.”

Despite many acknowledging they need help with their debt, Ontarians are more likely than any other province (68%) to be deterred by fears of debt-relief scams. Three in five (63%) don’t believe their situation is serious enough to seek debt help. Still, there has been a concerning nine-point jump since 2019 in the number of Ontarians (40%, +9pts from 2019) who admit they don’t know how to get out of debt or where to turn for help — with Ontarians and Albertans being the most likely to admit so among the provinces. Nearly three in five (57%, +2pts from 2019) struggle to trust professional companies to assist them. About half (47%) believe they will never be debt-free. 

“Even with resources available, many Ontarians remain uncertain about where to find reliable advice on debt-relief solutions,” says Newbery-Mitchell. “The best starting point is to consult with a Licensed Insolvency Trustee. They are the only federally regulated debt professionals, and the only professionals authorized to administer Consumer Proposals and Bankruptcies. It’s important to emphasize that Licensed Insolvency Trustees don’t just administer Bankruptcies — they can also provide guidance on other solutions like debt consolidation, budgeting strategies, and Consumer Proposals, which can help individuals avoid Bankruptcy.”

Common misconceptions can compound the stigma for many. Nearly two in five (38%) Ontarians worry that pursuing debt relief could lead them to lose their home, while three in five (59%) are concerned about the impact of Bankruptcy on their credit score — more than any other province.

“A misconception we often hear about Bankruptcy or insolvency is that people fear losing assets like their vehicle or home,” explains Newbery-Mitchell. “However, there are legal protections in place. A Consumer Proposal, for example, can eliminate or freeze interest, stop wage garnishments, end harassing creditor calls, and allow individuals to keep their assets while following a manageable repayment plan.”

Newbery-Mitchell adds that while individuals often worry about how their credit score would be affected by a Bankruptcy, she points out that a prolonged struggle with overwhelming debt can be just as damaging. A Bankruptcy or Consumer Proposal offers a fresh start where individuals can rebuild their credit score.

While Ontarians are torn on seeking help for their debt, some are stuck in patterns of financial strain, relying on short-term fixes that ultimately deepen their challenges. In the past year, more than a quarter of Ontarians (28%) have only paid the minimum towards the balance on their credit card, consistent with the last research wave in 2023. Debts continue to build, as about a quarter of Ontarians went further into credit card debt (25%, +4pts) or delayed or skipped a bill payment (23%). One in five have paid the minimum payment on their line of credit (20%, -1pt) in the last year and have reportedly sold their personal belongings to help make ends meet (21%).

“People often put off seeking help because they feel embarrassed and want to avoid talking about their debt struggles. However, delaying action can compound financial difficulties, especially as some individuals use credit to maintain appearances in their social circles,” explains Newbery-Mitchell. “To explore all available debt-relief solutions with no judgment, the best first step is to speak with a Licensed Insolvency Trustee. They offer free consultations with no strings attached. They are legally required to provide impartial guidance on all the debt-relief options available to help you uncover the right path forward.”

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 Ontarians 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, Ontarians 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.