Debt Literacy Month: Nearly half of Ontarians 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 Ontarians vulnerable to financial shocks and the long-term impact of borrowing costs.

TORONTO, ON – March 2, 2026 – Five years of national tracking data, compiled by Ipsos on behalf of MNP LTD, show that debt concern and regret remain elevated, financial preparedness has declined, and debt literacy lags as financial pressures persist.

More than two in five Ontarians (42%, +2 pts vs. 2020) say they are concerned about their current level of debt, and nearly half (47%, +1 pt vs. 2020) regret the amount of debt they have taken on. Confidence in long-term financial stability has decreased compared to five years ago, with only about half of Ontarians (52%, -3 pts vs. 2020) believing they will be debt-free in retirement.

While borrowing has become more common amid cost-of-living pressures, many Ontarians remain unclear on how interest works in practice and how rate changes affect their financial position. One in five Ontarians (21%, -3 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 findings reinforce why debt literacy remains important in Ontario. Knowing the balance owed is only part of the equation. A practical understanding of how interest compounds, how rate changes affect monthly budgets, and how to plan for financial disruptions is increasingly important amid ongoing economic pressures,” says Caryl Newbery-Mitchell, a Licensed Insolvency Trustee with MNP LTD in Toronto. “Interest accumulates steadily over time. Over several years, even relatively small changes in interest rates can add up and affect how long debt lasts and how much is ultimately repaid. What feels manageable at the outset can gradually stretch debt repayment timelines and increase total interest paid.”

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

“Financial shocks often increase reliance on debt or make existing debt more difficult to manage,” says Newbery-Mitchell. “Debt literacy helps Ontarians recognize early signs of financial strain, consider the implications of additional borrowing, and understand their options before debt pressures become more serious.”

Ontarians generally report feeling less equipped to handle unexpected life events compared to five years ago, as unresolved debt blind spots leave households more vulnerable when unexpected income loss or expenses occur. The most recent data shows that Ontarians recorded negative confidence scores for most unexpected life events tested — and all those scores have worsened since 2020. This underscores that many of the same risk-readiness blind spots persist today.

Source: Ipsos on behalf of MNP LTD

Caption: In a side-by-side comparison of 2020 and 2025, Ontarians’ net confidence in coping financially with unexpected life events has declined across all categories, with most measures now in negative territory and the remaining categories at neutral or only marginally positive levels.

Sudden financial shocks such as paying for someone’s education (-12%, -4 pts vs. 2020), the death of an immediate family member (-6%, -2 pts vs. 2020), job loss (-5%, -4 pts vs. 2020), and an illness preventing work for at least three months (-4%, -9 pts vs. 2020) all showed vulnerability. Relationship changes such as divorce or separation (0%, -6 pts vs. 2020) and unexpected auto repairs or vehicle purchase (+2%, -7 pts vs. 2020) remained in neutral or positive territory, although both declined compared to five years ago.

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

“Unexpected life events can quickly strain household finances and, in some cases, lead to new debt or make existing debt harder to manage, particularly for individuals already relying on credit to cover routine expenses,” explains Newbery-Mitchell. “Relationship breakdowns and job loss are common drivers of unmanageable debt. Seeking advice early can help individuals make informed decisions before short-term strain turns into longer-term debt challenges.”

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 cause individuals to underestimate how quickly balances grow, rely too heavily on minimum payments, or delay seeking debt help until the situation has become difficult to manage,” says Newbery-Mitchell. “Making only minimum payments can extend debt repayment for many years, in some cases even decades, and significantly increase the total cost of borrowing. Because compounding interest builds gradually over time, it’s not always obvious how much a debt situation has shifted. That’s why having access to clear, objective advice about finances and debt is especially important.”

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 in Canada 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 that conversation with a Licensed Insolvency Trustee sooner can help prevent a temporary setback from becoming a long-term financial crisis.

“Speaking with a Licensed Insolvency Trustee can be an important first step when debt begins to feel difficult to manage,” says Newbery-Mitchell. “We review each individual’s complete financial situation, outline realistic debt relief options, and work collaboratively to develop a 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.