Nearly two in five British Columbians fear they may never be debt-free; acknowledge needing help, but almost half are too embarrassed to seek it

• Two in five feel the stigma of Bankruptcy prevents them from seeking help (39%, +11pts from 2019).
• Far more British Columbians (36%, +10pts from 2019) say they don’t know how to get out of debt or where to turn for help.
• Mounting debt forces bad financial habits: About one in five (21%) are paying only the minimum on credit cards, have missed payments (20%), taken on more credit card debt (16%), or sold personal belongings (19%) to stay afloat.

March is debt literacy month, aiming to educate, empower, and break the stigma amid rising consumer debt

VANCOUVER, BC – March 3, 2025 – Mounting financial pressures are driving British Columbians 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, while most British Columbians agree there is no shame in seeking help with debt (74%, -11pts from 2019), a significant gap remains between belief and action. Two in five (39%) say the stigma of Bankruptcy prevents them from seeking assistance. This 11-point increase since 2019 underscores the critical need to address and dispel the stigma surrounding Bankruptcy and debt help.

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

“Although most British Columbians agree there’s no shame in asking for help with debt, the significant increase in those who say the stigma surrounding Bankruptcy prevents them from seeking help is troubling,” says Linda Paul, a Licensed Insolvency Trustee with MNP LTD in the Lower Mainland. “Debt Literacy Month is about empowering individuals with the knowledge and resources they need to make informed choices about their financial future and break free from the stigma and cycle of debt.”

Consumer insolvencies in B.C. increased by 7.5 percent in 2024, according to statistics from the Office of the Superintendent of Bankruptcy, underscoring the growing financial distress among British Columbians. Ongoing economic uncertainty, including concerns about trade policies and potential tariffs, could further impact household finances in the months ahead. Rising financial strain emphasizes the need for British Columbians to understand their debt relief options and take proactive steps toward financial stability.

The survey reveals that nearly two in five British Columbians (38%) acknowledge they need help to get out of debt. Yet, nearly half say they would be embarrassed to seek help if their financial situation was bad enough to consider Bankruptcy (46%, -3pts from 2019), and struggle to trust professional companies to assist them (46%, -4pts from 2019).

“Debt can feel like an isolating burden, leaving British Columbians feeling like there’s nowhere to turn,” says Paul. “The key is knowing you’re not alone in facing financial challenges. Anyone can find themselves in financial hardship — an unexpected health issue, divorce, job loss, or other life event. There’s no shame in seeking help.”

Despite many acknowledging they need help with their debt, half (51%) are deterred by fears of debt-relief scams, while nearly three in four (73%) don’t believe their situation is serious enough to seek debt help. Marking a concerning 10-point jump since 2019, far more British Columbians (36%) now admit they don’t know how to get out of debt or where to turn for help. Nearly two in five (38%) believe they will never be debt-free.

“While trustworthy debt-relief options are available, many British Columbians are not sure where to turn or who to see for reputable advice,” says Paul. “Licensed Insolvency Trustees are the best place to start. They are the only debt professionals regulated by the federal government and authorized to administer Consumer Proposals and Bankruptcies. Bankruptcy isn’t the only option; Licensed Insolvency Trustees can also help individuals with budgeting strategies and options like debt consolidation and consumer proposals.”

Common misconceptions can compound the stigma for many. A third (32%) of British Columbians worry that pursuing debt relief could lead them to lose their home, while nearly half (46%) are concerned about the impact of Bankruptcy on their credit score.

“A key misconception about Bankruptcy or insolvency is that an individual will lose their car or home automatically,” explains Paul. “But there are legal protections in place. Take a Consumer Proposal, for instance: it can freeze or eliminate interest, stop wage garnishments, end harassing creditor calls and allow individuals to hold onto their assets — all while the individual follows a manageable repayment plan that leads them back to financial stability.”

Paul adds that while individuals often worry about how their credit score would be affected by Bankruptcy, she points out that struggling with overwhelming debt for a prolonged period can also hurt their credit score. A Bankruptcy or Consumer Proposal provides a fresh start and individuals can rebuild their credit score.

While British Columbians 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, one in five British Columbians (21%) have only paid the minimum payment towards the balance on their credit card, a three-point increase from 2023. Debts continue to build as about one in five British Columbians have delayed or skipped a bill payment (20%), went further into credit card debt (16%, -3pts), or have paid the minimum payment on their line of credit (16%, +2pts) in the last year. One in five (19%) have reportedly sold their personal belongings to make ends meet.

“People often put off seeking help because they are embarrassed to talk about their debt, but this can lead to more debt as they struggle to keep up appearances in their social circles,” explains Paul. “To find the right solution for your financial situation, speaking with a Licensed Insolvency Trustee is a good place to start. They are legally required to provide impartial guidance and clearly outline all debt-relief options available to help you regain control of your finances. Most importantly they provide free, no-obligation consultations.”

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

To provide Canadians with access to trustworthy debt advice, MNP’s extensive network of Licensed Insolvency Trustees also offers free consultations in over 200 offices nationwide, delivering 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 struggling with an overwhelming amount of debt each year. 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.