Three-quarters of New Brunswickers have cut spending or postponed major purchases as they take steps to safeguard their finances amid economic uncertainty

• Atlantic Canadians’ concern over rising interest rates surges (64%, +10 pts).
• A third of Atlantic Canadians brace for increased housing costs (32%).

MONCTON, NB – April 14, 2025 – Atlantic Canadians are taking steps to safeguard their finances amid ongoing economic uncertainty. Three-quarters (76%) say they have cut back on spending due to economic uncertainty — more than those in any other province. The same proportion (76%) say they are delaying major purchases or investments, according to the latest MNP Consumer Debt Index.

The majority of Atlantic Canadians (86%) say economic uncertainty has made them more cautious about taking on new debt — the highest proportion among all provinces. Seven in 10 (69%) Atlantic Canadians express heightened concern about their ability to pay off debt due to ongoing uncertainty, also the highest proportion among all provinces. This concern extends to broader financial stability, with a third worried about the possibility of someone in their household losing their job (35%, +2 pts). Atlantic Canadians are also the most likely to say they regret the amount of debt they have taken on (53%, +7 pts). However, a higher proportion this quarter believes they will be able to cover their living expenses in the next year without needing more credit (62%, +13 pts).

“We’ve seen a modest shift in Atlantic Canadians’ financial outlook after two interest rate cuts by the Bank of Canada so far this year,” says Tara Silliker, a local Licensed Insolvency Trustee with MNP LTD. “Many remain concerned about job security and debt. However, more believe they can manage their living expenses without going further into debt. While uncertainty remains regarding U.S. tariffs, their on-again, off-again nature may be fueling both caution and hope, especially as their financial impact has yet to be fully realized in household budgets.”

Concern about the impact of rising interest rates has increased among Atlantic Canadians (64%, +10 pts), more than those in any other province. Slightly more Atlantic Canadians this quarter are worried about their ability to repay their debts, even if interest rates decline (45%, +2 pts). More than half (56%, +6 pts) continue to worry about being in financial trouble if interest rates rise — more than those in any other province. However, some concerns about the broader impact of interest rates have softened, due in part to the interest rate reductions this year. Fewer now feel (20%, -4 pts) less prepared to absorb an interest rate increase of one percentage point, and fewer (21%, -4 pts) feel better equipped to handle such an increase. Fewer this quarter (34%, -5 pts) fear that rising interest rates could push them toward Bankruptcy.

“Recent interest rate cuts, combined with the budgeting changes many households have implemented, appear to be easing some of the strain,” says Silliker. “While concerns about rising interest rates and debt repayment remain high, we’re seeing some signs of improved financial sentiment.”

Reflecting this shift toward financial caution, fewer Atlantic Canadians rate their personal debt situation negatively (15%, -9 pts), while a larger proportion rate it positively (39%, -2 pts). Atlantic Canadians are more likely (58%) than those in any other province to say they are relying more on financial advice and planning due to the uncertain economic environment.

“The data suggests that Atlantic Canadians are proactively adjusting their spending habits and cutting back on credit use as they prepare for potential financial challenges,” says Silliker.   

Fewer Atlantic Canadians (44%, -5 pts) report being $200 or less away from financial insolvency. This is due to fewer saying they are already financially insolvent (26%, -3 pts).

“About four in 10 Atlantic Canadians continue to say they are on the edge of insolvency, with more than a quarter reporting they have no financial breathing room in their budgets. Increasing living costs, housing expenses, or an unexpected loss of income could quickly lead to serious financial hardship for those without a financial cushion," says Silliker.

A third (32%) of Atlantic Canadians say they are bracing for an increase in housing costs within the next year.

"Many Atlantic Canadians may be approaching mortgage renewals that come with much higher interest rates, with potential rent increases to follow. These rising costs, compounded by continued economic uncertainty, could be difficult to absorb for those already struggling," says Silliker.

Silliker 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 impartial advice to help Atlantic Canadians manage immediate financial pressures and develop long-term debt solutions — particularly during periods of financial instability,” says Silliker.

Licensed Insolvency Trustees play a vital role in helping Atlantic Canadians 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.