TORONTO, ON – October 6, 2025 – Ontarians’ financial vulnerability is intensifying as persistent economic uncertainty, concerns about borrowing costs, and employment anxiety weigh on household confidence. Faced with mounting financial pressure, many indebted Ontarians are being forced into difficult “heat or eat” decisions — choosing between necessities such as heating their homes and putting food on the table. According to the latest MNP Consumer Debt Index, three in 10 (31%, + 7pts) Ontarians say they have reduced their utility consumption while a quarter (26%, -2 pts) report eating less to save money. These stark trade-offs reflect the deepening strain on household budgets, particularly as winter heating costs loom.
“We’re seeing more Ontarians having to make cutbacks that affect their quality of life,” says Caryl Newbery-Mitchell, a Licensed Insolvency Trustee with MNP LTD in Toronto. “When families are forced to reduce spending on food, heating, or even medical care, it’s no longer just about tightening the budget, it’s about making impossible choices that directly affect health and well-being.”
Beyond heating and food, Ontarians are cutting back in other ways. More than half (53%, +1 pt YoY) say they are grocery shopping strategically by using meal plans, bulk buying, coupons, and price matching. More than two in five are avoiding impulse purchases (43%, unchanged) and have stopped dining out or ordering takeout (42%, unchanged). Ontarians are also the most likely of the provinces (23%) to say they are delaying or skipping medical, dental, or prescription care, highlighting how financial strain is affecting households’ well-being.
Even with these sacrifices, financial cushions are shrinking. Half (+7pts) of Ontarians report they are within $200 of being unable to pay their bills each month. At the same time, the average amount left over after monthly expenses has fallen to $725 from $884.
“With so little left after covering monthly expenses, even a modest, unexpected cost can derail a household’s finances,” adds Newbery-Mitchell. “Too often, that forces people to rely on high-cost credit, which only deepens the problem. The sooner people reach out for help, the more options they’ll have to prevent things from spiralling.
A softening job market is eroding Ontarians’ confidence in their ability to cope with income disruption, with confidence in handling a job loss falling by a staggering 11 points this quarter, the largest drop amongst the provinces. Against this backdrop, more than two in five (45%) worry that artificial intelligence (AI) could negatively affect their job or income.
“For many Ontarians, financial strain has put them in a vulnerable position – and now they’re looking at the added uncertainty of AI’s impact on work,” says Newbery-Mitchell. “When people are already stretched, the possibility of job loss or reduced income only magnifies the pressure.”
Fewer than half (44%) of Ontarians report having six months of emergency savings to withstand a disruption, highlighting just how exposed many households would be if their income were reduced or lost.
Fewer Ontarians (38%, -5 pts) this quarter rate their debt situation as “excellent,” while more (19%, +3 pts) describe it as “terrible.” Although the Bank of Canada held interest rates at 2.75 percent during the survey period and cut to 2.5 percent shortly after, nearly two-thirds (63%, +1 pt) of Ontarians said they desperately need rates to go down, and almost half (46%, +7 pts) said even if rates decline, they remain concerned about their ability to repay debt. Two in five (43%, +9 pts) worry that rising rates in the future could push them toward Bankruptcy, marking the largest increase among all the provinces. Significantly fewer this quarter (28%, -7 pts) expect their debt situation to improve in the next year, and fewer (37%, -4 pts) expect improvement over the next five years.
“Lower interest rates may ease some pressure, but they don’t make the debt itself go away,” explains Newbery-Mitchell. “That’s where Licensed Insolvency Trustees can step in. Seeking their help isn’t a last resort – it’s a proactive step that helps people tackle the root of the problem and move toward financial stability.”
Looking ahead, the report findings suggest households plan to cut back further in the coming year. Fewer Ontarians (27%, -4 pts YoY) say they have no plans to save more in the next 12 months, and more (17%, +4 pts) intend to create or revise a household budget. A further 12 percent say they are considering relocating to more affordable housing, or even eating less (9%, +2 pts) to save money. Additionally, 12 percent (+1 pt) say they plan to reduce utility consumption over the next year — a concerning sign as households head into the winter months.
“The fact that many Ontarians feel they need to cut back even further in the coming year highlights how persistent and difficult financial pressures have become,” says Newbery-Mitchell. “When households reach that point, professional guidance can make a real difference. Licensed Insolvency Trustees provide more than debt solutions — they listen, give unbiased advice, and help people find a path forward before the pressure becomes overwhelming.”
Licensed Insolvency Trustees provide free, confidential consultations and are the only federally regulated debt professionals authorized to administer consumer proposals and bankruptcies. With more than 200 offices across the country, MNP LTD’s team of Licensed Insolvency Trustees deliver local, personalized and non-judgmental guidance to help Canadians understand their options and take the first step toward lasting financial stability.
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.
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-fourth wave, the Index has fallen by two points from last quarter to 86 points. Visit MNPdebt.ca/CDI to learn more.
The data was compiled by Ipsos on behalf of MNP LTD between September 4 and September 9, 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 ±2.5 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.
CIRP, LIT, MBA
Senior Vice-President
Servicing: Markham, Toronto (Yonge & Eglinton), Oakville
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