Nearly Half of Quebecers fear they may never be debt-free; two in five acknowledge needing help but are too embarrassed to seek it

• Mounting debt forces bad financial habits: A quarter (26%) are paying only the minimum on credit cards, about one in five have missed payments (21%) or taken on more credit card debt (17%), and one in 10 sold personal belongings (13%) to stay afloat.
• Two in five feel the stigma of Bankruptcy prevents them from seeking help (39%, +11pts from 2019).
• More Quebecers (34%, +6pts 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

MONTREAL, QC – March 3, 2025 – Mounting financial pressures are driving Quebecers 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, about two in five Quebecers (38%) acknowledge they need help to get out of debt, yet about the same proportion (41%, unchanged from 2019) say they would be embarrassed to seek help if their financial situation was bad enough to consider Bankruptcy.

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

“Carrying debt can feel incredibly isolating, leaving many unsure where to turn for help,” says Frédéric Lachance, a Licensed Insolvency Trustee with MNP LTD in Montreal. “Debt Literacy Month aims to break down these walls, giving Quebecers the knowledge and confidence to escape the cycle of debt, tackle stigma, and make informed choices about their financial situation.”

Consumer insolvencies in Quebec increased by 12.1 percent in 2024, according to statistics from the Office of the Superintendent of Bankruptcy, underscoring the growing financial distress among Quebecers. Ongoing economic uncertainty, including concerns about how trade policies and potential tariffs could further impact household finances in the months ahead. With rising financial strain, Quebecers need to know their debt relief options and take proactive steps toward financial stability.

The survey reveals that while a majority of Quebecers agree there is no shame in seeking help with debt (77%, -4pts from 2019), a significant gap remains between belief and action, as two in five (39%, +11pts from 2019) say the stigma of Bankruptcy prevents them from seeking assistance. The 11-point increase since 2019 underscores the critical need to address and dispel the stigma surrounding Bankruptcy and debt help.

“While most Quebecers agree there’s no shame in asking for help with their debt, many hesitate to follow that advice,” says Lachance. “It’s crucial to remember that financial hardship can affect anyone — whether due to job loss, divorce or unexpected health issues. You’re not alone, and there’s no shame in reaching out for support.”

Despite many acknowledging they need help with their debt, nearly two in three Quebecers are deterred by fears of debt-relief scams (64%) or don’t believe their situation is serious enough to seek help (64%). Marking a concerning six-point jump since 2019, far more Quebecers (34%, +6pts from 2019) now admit they don’t know how to get out of debt or where to turn for help. More than half (52%, +3pts from 2019) struggle to trust professional companies to assist them. Nearly half (45%) believe they will never be debt-free.

“Debt-relief resources are accessible, but Quebecers are unsure who they can rely on for trusted guidance,” says Lachance. “Contrary to common belief, Licensed Insolvency Trustees do more than just handle Bankruptcies. As the only federally regulated debt professionals, they are authorized to administer both Bankruptcies and Consumer Proposals. They can also help individuals avoid Bankruptcy through options like debt consolidation and budgeting strategies.”

Common misconceptions can compound the stigma for many. A third (32%) of Quebecers are afraid that pursuing debt relief could lead them to lose their home, while more than half (55%) are concerned about the impact Bankruptcy would have on their credit score.

“A misconception we often hear about Bankruptcy or insolvency is that people think they will automatically lose their home or car — but there are legal protections in place to protect these assets,” explains Lachance. “Take a Consumer Proposal, for example. It allows individuals to keep their assets, halt or eliminate interest charges, stop wage garnishments, and put an end to harassing creditor calls. Provided they follow the agreed payment schedule, they’re on the path to becoming debt-free and rebuilding their credit.”

Lachance adds that while individuals often worry about how their credit score would be affected by Bankruptcy, he points out that a prolonged struggle with overwhelming debt can also hurt their credit score. After a Bankruptcy or Consumer Proposal, individuals can get a fresh start and rebuild their credit score.

While Quebecers 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, a quarter of Quebecers (26%, +4pts) have only paid the minimum payment towards the balance on their credit card, increasing four points since 2023. Debts continue to build, as about one in five Quebecers have delayed or skipped a bill payment (21%) or went further into credit card debt (17%, -2pts). One in 10 have paid the minimum payment on their line of credit in the last year (13%, -2pts) or have reportedly sold their personal belongings just to help make ends meet (13%).

“Trying to maintain appearances while struggling with debt can lead people to overspend or rely on credit, worsening their financial situation,” explains Lachance. “To determine the right solution for your financial situation, the best first step is to speak with a Licensed Insolvency Trustee. They offer free consultations with no strings attached and are legally bound to provide unbiased advice, outlining every available debt-relief option to help you find the right solution.”

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

To provide Canadians with access to trustworthy debt advice, MNP has an extensive network of Licensed Insolvency Trustees who provide free consultations in over 200 offices nationwide. They deliver 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.