Nearly three-quarters of Albertans have cut spending or postponed major purchases as they take steps to safeguard their finances amid economic uncertainty

• Albertans’ debt concerns ease, but two in five (43%) in the province brace for increased housing costs.

CALGARY, AB – April 14, 2025 – Albertans are taking steps to safeguard their finances amid ongoing economic uncertainty. Three-quarters (75%) say they have cut back on spending due to economic uncertainty, and nearly as many (71%) say they are delaying major purchases or investments, according to the latest MNP Consumer Debt Index.

The majority of Albertans (83%) say economic uncertainty has made them more cautious about taking on new debt. More than half (60%) express heightened concern about their ability to pay off debt due to ongoing uncertainty. However, the proportion of Albertans who believe they will be able to cover their living expenses in the next year without needing more credit (53%) remains unchanged. Significantly fewer regret the amount of debt they have taken on (46%), down 10 points since last quarter.

“The shift we are seeing in how Albertans feel about their personal finances follows the two interest rate cuts from the Bank of Canada so far this year. While economic uncertainty remains — particularly around U.S. tariffs — their on-again, off-again status may be giving some Albertans a sense of optimism about the potential impact on household budgets,” explains Lindsay Burchill, a Licensed Insolvency Trustee with Alberta-based MNP LTD.

The proportion of Albertans concerned about the impact of rising interest rates remains high (64%, -1 pt). However, overall concerns about the broader impact of interest rates have declined due in part to the interest rate reductions this year. Significantly fewer Albertans this quarter are worried about their ability to repay their debts, even if interest rates decline (45%, -12 pts), and fewer fear that rising interest rates could move them toward Bankruptcy (34%, -17 pts). Fewer this quarter (20%, -2 pts) feel less prepared to absorb an interest rate increase of one percentage point, while fewer (20%, -4 pts) feel better equipped to handle such an increase. Half of Albertans (50%, -4 pts) continue to worry about being in financial trouble if interest rates rise.

“Albertans may be feeling some cautious optimism with the adjustments to their household budgets and declining interest rates,” says Burchill.

Reflecting this shift toward financial caution, significantly more Albertans rate their personal debt situation positively this quarter (36%, +8 pts), while fewer rate it negatively (15%, -9 pts). Nearly half (48%) of Albertans say they are relying more on financial advice and planning due to the uncertain economic environment.

“Albertans have more positive debt perceptions this quarter. However, the data suggests that even after cutting back in anticipation of potential financial challenges ahead, those efforts may not have made a meaningful impact on those who remain close to or already at the point of financial insolvency,” says Burchill.

Slightly more Albertans this quarter (45%, +2 pts) report being $200 or less away from financial insolvency. Alberta and B.C. were the only provinces to see an increase. A third of Albertans say they are already insolvent (32%), remaining unchanged from last quarter — the highest proportion among all provinces.

“Nearly half of Albertans report being on the brink of insolvency, an increase from last quarter. Albertans are more likely than those in any other province to say they have no financial flexibility, cushion, or room to maneuver in their budgets. These individuals are likely to experience serious financial strain when faced with increasing costs of living, rising housing expenses, or a potential income disruption without any financial buffer," says Burchill.

Two in five (43%) Albertans say they are bracing for an increase in housing costs within the next year.

"Many Albertans are approaching mortgage renewals that could come with much steeper interest rates and rent hikes could potentially follow. These are just some of the growing expenses — compounded by ongoing economic uncertainty — that could push those already on the financial brink even closer to crisis,” says Burchill.

Burchill says that there is help for those struggling to manage debt repayment, missing monthly payments, or simply unable to make ends meet.

“Licensed Insolvency Trustees provide unbiased advice and support to help individuals navigate short-term financial burdens and long-term debt management,” says Burchill.

Licensed Insolvency Trustees play a vital role in helping Albertans navigate financial challenges and make informed decisions about managing their debt. Seeking guidance from a Licensed Insolvency Trustee can provide individuals with a clear understanding of their debt relief options in an unpredictable financial landscape. Licensed Insolvency Trustees provide free consultations to help individuals assess their financial situation, understand their options, and create customized plans to regain control of 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. Licensed Insolvency Trustees are the only federally regulated debt 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.

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 MNP Consumer Debt Index

The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses, and absorb interest-rate fluctuations without approaching insolvency. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.

Now in its thirty-second wave, the Index has rebounded to 88 points, up nine points since last quarter. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between March 11 and March 14, 2025. For this survey, a sample of 2,000 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.