Debt Literacy Month: Nearly half (49%) of Quebecers 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 Quebecers vulnerable to financial shocks and the long-term impact of borrowing costs.

MONTREAL, QC – 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 among Quebecers, financial preparedness has declined, and debt literacy lags as financial pressures persist.

Nearly half of Quebecers (45%, -1 pt vs. 2020) say they are concerned about their current level of debt, and about half (49%, +3 pts vs. 2020) regret the amount of debt they have taken on. Confidence in long-term financial stability has dropped significantly compared to five years ago, with only about half of Quebecers (49%, -8 pts vs. 2020) believing they will be debt-free in retirement.

While borrowing has become more common amid cost-of-living pressures, many Quebecers remain unclear on how interest works in practice and how rate changes affect their financial position. Nearly one in five Quebecers (17%, -6 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.

“These findings underscore the need for stronger debt literacy across the province. Simply knowing the balance owed is only part of the picture. A working understanding of compounding interest, rate sensitivity, and contingency planning is increasingly important amid ongoing economic uncertainty,” says Frédéric Lachance, a Licensed Insolvency Trustee with MNP LTD in Montreal. “The impact of interest can be cumulative. Over a five-year period, for example, debt can quietly tighten its grip as interest builds in the background, and even modest interest rate increases can deepen financial strain. What initially feels manageable can slowly stretch out repayment timelines and significantly increase the total cost of borrowing.”

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

“Financial shocks often become a tipping point that either creates debt or pushes existing debt into unmanageable territory. Debt literacy is what helps Quebecers spot early warning signs, weigh the trade-offs of relying on credit, and understand their options before problems escalate,” says Lachance.

Quebecers 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 sudden income loss or expenses occur. The most recent data shows that Quebecers recorded negative confidence scores for every unexpected life event tested — and nearly all of 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, Quebecers’ net confidence in coping financially with unexpected life events is lower across almost all categories, and all measures now fall in negative territory.

Sudden financial shocks such as unexpected auto repairs or vehicle purchase (-9%, -17 pts vs. 2020), job loss (-8%, -6 pts vs. 2020), education costs (-4%, -5 pts vs. 2020), and an illness preventing work for at least three months (-6%, -6 pts vs. 2020) showed the greatest vulnerability. Relationship changes such as divorce or separation (-1%, -6 pts vs. 2020) and the death of an immediate family member (-2%, +1 pt vs. 2020) also remained in negative territory.

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

“Unexpected changes in someone’s circumstances can put pressure on household finances very quickly, especially for people already leaning on credit to cover day-to-day costs,” says Lachance. “Relationship breakdowns and job loss or reduced income are among the most frequent catalysts for serious debt problems. Getting qualified advice early allows individuals to clearly understand their options and make informed decisions before financial stress intensifies.”

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 balances to grow more quickly than expected. Minimum payments can stretch repayment over many years and people may delay seeking help until their debt has spiralled,” says Lachance. “Paying only the minimum can mean carrying debt for years or even decades and ultimately paying several times the original amount in interest. Because the compounding effect of interest builds gradually over time, it can be difficult to see how quickly a situation is changing. That’s why access to clear, unbiased advice is so 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 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 a 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 is often the most constructive place to start for anyone feeling overwhelmed by debt,” says Lachance. “We take a comprehensive view of each person’s circumstances, help them understand what is realistically achievable, and develop a clear, practical plan that puts them back in control over their finances.”

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.