Quebecers left with the smallest financial cushion in Canada as strain deepens

• The average amount Quebecers have left over after monthly expenses falls to $684 from $909 — the lowest of any province.
• Nearly half are within $200 of insolvency each month (49%, +7 pts QoQ), and fewer than half report having six months of emergency savings (45%), leaving many households highly exposed to disruption.
• About one in five (18%, +4 pts YoY) say they have reduced their utility consumption, while 14 percent (-6 pts YoY) report eating less to save money — highlighting difficult “heat or eat” decisions.
• Adding to these pressures, more than two in five Quebecers worry that AI could negatively affect their job or income (42%).

MONTREAL, QC – October 6, 2025 – According to the latest MNP Consumer Debt Index, Quebecers’ financial vulnerability is intensifying as persistent economic uncertainty, concerns about borrowing costs, and employment anxiety weigh on household confidence. Even with widespread cutbacks, many households in Quebec are left with little financial cushion. Nearly half (49%) of Quebecers report being within $200 of being unable to pay their bills each month, climbing a significant seven points since last quarter. The average amount Quebecers have left over after monthly expenses has fallen to $684 from $909 — the lowest of any province.

“With so little financial breathing room, even small emergency expenses can push individuals into relying on high-interest forms of credit. That’s often the tipping point where debt starts to snowball,” says Frédéric Lachance, a Licensed Insolvency Trustee with MNP LTD in Montreal. “Too many Quebecers are telling us they feel stuck, and by the time they reach out, the situation has already become much harder for them to manage.”

Some indebted Quebecers are being forced into difficult “heat or eat” decisions — choosing between necessities such as heating their homes and putting food on the table. About one in five (18%, + 4pts) Quebecers say they have reduced their utility consumption while 14 percent (-6 pts) report eating less to save money. These stark trade-offs reflect the deepening strain on household budgets, particularly as winter heating costs loom.

“For some households, covering the basics is no longer straightforward. Food, heating, even health costs have become stressful choices,” says Lachance. “At that point, it’s not a question of adjusting the family budget, it’s about coping with daily survival. Living with that kind of pressure weighs heavily on people’s well-being.”

Beyond heating and food, Quebecers are cutting back in other ways too. Nearly half (47%, unchanged YoY) are avoiding impulse purchases, and two in five (41%, -2 pts) say they are grocery shopping strategically by using meal plans, bulk buying, coupons, and price matching. More than a third (37%, -7 pts) have stopped dining out or ordering takeout. One in 10 (12%) are also delaying or skipping medical, dental, or prescription care, highlighting how financial strain is affecting households’ well-being.

Job insecurity and AI concerns add to financial strain

A softening job market is eroding Quebecers’ confidence in their ability to cope with income disruption, with confidence in handling a job loss falling by six points this quarter. Against this backdrop, two in five (42%) worry that artificial intelligence (AI) could negatively affect their job or income.

“It is troubling to see so many Quebecers worried about how AI could affect their jobs,” says Lachance. “When people are already living paycheque to paycheque without strong financial reserves, the idea of added uncertainty in the workplace feels especially threatening.”

Fewer than half (45%) of Quebecers 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.

Debt outlook darkens as some Quebecers run out of options

Fewer Quebecers than last quarter (33%, -5 pts) rate their debt situation as “excellent”, nearly one in five (17%, -1 pt) 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%, unchanged) of Quebecers said they desperately need rates to go down, and more than two in five (42%, unchanged) said even if rates decline, they remain concerned about their ability to repay debt. Two in five (40%, -1 pt) worry that rising rates in the future could push them toward Bankruptcy. Significantly fewer this quarter (26%, -9 pts) expect their debt situation to improve in the next year, and fewer (37%, -5 pts) expect improvement over the next five years.

“For Quebecers already burdened with heavy debt, a small drop in interest rates likely doesn’t fix the problem,” explains Lachance. “Lower borrowing costs may provide temporary relief, but the stress doesn’t go away if the debt itself remains. Speaking with a Licensed Insolvency Trustee early on is not about last resorts — it’s about finding a practical way forward before the damage becomes lasting.”

Despite cost-cutting efforts, the report findings suggest some households have exhausted their options. Quebecers are the most likely among the provinces (38%, +7 pts YoY) to report having no plans to save more in the next 12 months, and only 13 percent (unchanged) intend to create or revise a household budget. Far fewer plan to negotiate their bills (6%), down six points since the same quarter last year. At the same time, significantly more this quarter are planning to eat less (10%, +6 pts), while seven percent (-5 pts) say they plan to reduce utility consumption over the next year to save money.

“When individuals are forced to weigh groceries against other daily essentials, it isn’t just their finances that are suffering – it’s their sense of security,” says Lachance. “Licensed Insolvency Trustees don’t just help resolve debt problems. They help safeguard what people still have, explain options clearly, and restore a sense of direction. Even in difficult financial situations, there is always a way forward.”

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.

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-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.