Debt Literacy Month: Nearly three in five Nova Scotians regret their debt, up 16 points in five years, 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 Atlantic Canadians vulnerable to financial shocks and the long-term impact of borrowing costs.

HALIFAX, NS – March 2, 2026 – Five years of national tracking data, compiled by Ipsos on behalf of MNP LTD, show that debt concern and regret have spiked, financial preparedness has weakened, and debt literacy challenges remain as financial pressures persist.

More than half of Atlantic Canadians (55%, +13 pts vs. 2020) say they are concerned about their current level of debt, and nearly three in five (58%, +16 pts vs. 2020) regret the amount of debt they have taken on — both the largest increases and highest proportions among all provinces. Atlantic Canadians are also the least likely among all provinces to express confidence in their long-term financial stability, despite a modest two-point improvement. Fewer than half of Atlantic Canadians (46%, +2 pts vs. 2020) believe they will be debt-free in retirement.

While borrowing has become more common amid cost-of-living pressures, some Atlantic Canadians remain unclear on how interest works in practice and how rate changes affect their financial position. About one in five Atlantic Canadians (19%, -9 pts vs. 2020) say they do not have a solid understanding of how interest rate increases impact their financial situation, marking a notable improvement over five years. However, concern and regret about debt have risen sharply to the highest levels among all provinces even as awareness about how borrowing costs impact debt has improved. This suggests that greater understanding has not translated into stronger financial confidence, and that cost pressures and existing debt burdens may be weighing more heavily on households.

“It is encouraging to see improved awareness around how interest rates affect personal finances, but debt literacy must go beyond understanding alone,” says Tina Powell, a local Licensed Insolvency Trustee with MNP LTD. “Understanding how interest compounds is an important first step, but it needs to be translated into practical decisions, such as reviewing repayment timelines, stress-testing household budgets, and actively reducing balances where possible. Debt can continue to weigh on households without that follow-through, even when people understand the mechanics behind it.”

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

“Financial shocks can quickly increase reliance on debt or make an existing debt situation more difficult to manage,” says Powell. “Debt literacy helps Atlantic Canadians recognize early warning signs, better understand the trade-offs involved in using credit, and think ahead about how they would respond if their circumstances changed.”

Atlantic Canadians 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 Atlantic Canadians recorded negative confidence scores for nearly every unexpected life event tested, and all but one 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, Atlantic Canadians’ net confidence in coping financially with unexpected life events is lower across almost all categories, and all but one measure now fall in negative territory.

Sudden financial shocks such as the death of an immediate family member (-22%, -8 pts vs. 2020), job loss (-19%, -6 pts vs. 2020), education costs (-18%, -2 pts vs. 2020), an illness preventing work for at least three months (-17%, -21 pts vs. 2020), and unexpected auto repairs or vehicle purchase (-4%, -7 pts vs. 2020) all showed vulnerability. Relationship changes such as divorce or separation (+2%, +6 pts vs. 2020) was the only scenario to move into positive territory, though confidence remains only marginally above neutral.

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

“Financial strain can escalate quickly when an unexpected life event occurs, particularly for households already relying on credit for daily expenses,” says Powell. “Job loss or income disruptions and relationship breakdowns are common contributors to debt becoming harder to manage. Seeking qualified, unbiased advice early can help individuals assess their options and make informed decisions before short-term pressure becomes a longer-term debt problem.”

Even where understanding has improved, knowledge gaps in how interest is applied in real-world planning can compound financial risk over time. This can make it harder to stay prepared for unexpected life events. A sudden life shock can turn manageable debt into something far more difficult to handle when people underestimate how quickly interest adds to their balances.

“The effects of interest on debt are not always visible in the short term, but they can significantly increase what is owed over time,” says Powell. “Debt that feels manageable today can last far longer than anticipated and cost more over time without regularly reassessing repayment plans. Because the shift can be so gradual, some people may delay seeking debt help because the full impact isn’t immediately clear. That’s why access to clear, impartial advice about debt 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 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 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 can be an important first step when debt begins to feel increasingly difficult to manage,” says Powell. “We look at a person’s complete financial picture, outline practical options for addressing their debt, and work with them to build a structured 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.