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

• More than half of British Columbians are concerned about rising interest rates (57%, +7 pts).
• Two in five in the province brace for increased housing costs (39%).

VANCOUVER, BC – April 14, 2025 – British Columbians are taking steps to safeguard their finances amid ongoing economic uncertainty. Nearly three-quarters say they have cut back on spending (74%) and are delaying major purchases or investments (75%), according to the latest MNP Consumer Debt Index. 

The majority of British Columbians (79%) say economic uncertainty has made them more cautious about taking on new debt. More than half (58%) of British Columbians express heightened concern about their ability to pay off debt due to ongoing uncertainty. This concern extends to broader financial stability, with about a third (32%, +4 pts) worried about the possibility of someone in their household losing their job. However, a higher proportion this quarter believes they will be able to cover their living expenses in the next year without needing more credit (58%, +7 pts). Fewer regret the amount of debt they have taken on (40%, -7 pts) — making British Columbians the least likely to regret their debt compared to those in other provinces. Nearly half (46%) of British Columbians say they are relying more on financial advice and planning due to the uncertain economic environment. 

“British Columbians may have a more positive financial outlook after two interest rate cuts by the Bank of Canada this year. While uncertainty continues — particularly around U.S. tariffs — their on-again, off-again nature may be providing a bit of hope about the potential impact on household budgets,” explains Linda Paul, a Licensed Insolvency Trustee with MNP LTD in the Lower Mainland. 

Despite the recent interest rate cuts, significantly more British Columbians this quarter (57%, +7 pts) are concerned about the impact of rising interest rates. Additionally, slightly more British Columbians this quarter are worried about their ability to repay their debts, even if interest rates decline (44%, +2 pts). The proportion who feel better equipped to absorb an interest rate increase of one percentage point (20%, -3 pts) has declined this quarter, and more (23%, +2 pts) feel less prepared to handle such an increase. Nearly three in five (57%, +7 pts) continue to worry about being in financial trouble if interest rates rise. More than a third (36%, +2 pts) fear that rising interest rates could push them toward Bankruptcy. 

“Many provinces are seeing some interest rate concerns ease in the lower-rate environment. However, British Columbians’ earlier confidence appears to be giving way to growing concerns,” says Paul. “This shift brings them more in line with the rest of the country.” 

There was no positive shift in how British Columbians rate their personal debt situation this quarter, despite many taking steps toward financial caution. The proportion of those who rated their debt situation positively remained unchanged (37%), while those who rated it negatively (20%, -1 pt) remained relatively stable. 

“British Columbians have taken proactive steps to reduce spending and lessen their use of credit as they brace for potential financial hardship ahead. However, those efforts may not yet have made a meaningful impact on those close to insolvency,” says Paul.

Slightly more British Columbians (48%, +2 pts) report being $200 or less away from financial insolvency this quarter. B.C. and Alberta were the only provinces to experience an increase. Three in 10 British Columbians continue to say they are already financially insolvent (30%, -1 pt), remaining relatively stable since last quarter. 

“Close to half of British Columbians still report being on the brink of insolvency, and three in 10 have no room in their budget, flexibility, or financial cushion. Many may be vulnerable to serious financial hardship when faced with increasing costs of living, rising housing expenses, or an unexpected loss of income," says Paul.

Two in five (39%) British Columbians say they are bracing for an increase in housing costs within the next year. 

"With many in the province set to renew their mortgages at higher interest rates — and others facing possible rent hikes as a result — the financial burden for already strained households may grow further. Those living close to the margin are in no position to absorb additional financial strain such as rising housing costs alongside ongoing economic uncertainty,” says Paul. 

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

“British Columbians who are feeling overwhelmed by debt or unable to keep up with their financial obligations can speak with a Licensed Insolvency Trustee for unbiased advice. Licensed Insolvency Trustees provide non-judgemental guidance to help individuals navigate both immediate financial pressures and long-term debt management, particularly during periods of financial instability,” says Paul.

Licensed Insolvency Trustees play a vital role in helping British Columbians 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.