Two in five Canadians fear they may never be debt-free; acknowledge needing help, but nearly half are too embarrassed to seek it

• Mounting debt forces bad financial habits: A quarter (26%) are paying only the minimum on credit cards; about one in five have missed payments (22%), taken on more credit card debt (20%), or sold personal belongings (18%) to stay afloat.
• Two in five feel the stigma of Bankruptcy prevents them from seeking help (40%, +9pts from 2019), with younger Canadians being the most likely to admit so (53%).
• More Canadians (36%, +6pts from 2019) say they don’t know how to get out of debt or where to turn for help.

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

CALGARY, AB – March 3, 2025 – Mounting financial pressures are driving Canadians — especially younger Canadians — 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, two in five Canadians (43%) acknowledge they need help to get out of debt. Yet almost half (48%, +2pts from 2019) say they would be embarrassed to seek help if their financial situation was bad enough to consider Bankruptcy. Younger Canadians aged 18-34 (61%) are the most likely to be embarrassed about seeking help, a key barrier to addressing their debt.

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

“Debt can be a lonely burden, making it feel like there’s nowhere to turn,” says Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “Debt Literacy Month is about breaking down these barriers and empowering Canadians with the knowledge that they can break free from the cycle of debt, overcome stigma, and make informed choices about their financial future. This is especially critical for younger Canadians who, burdened by embarrassment, may be less likely to seek help.” 

Consumer insolvencies in Canada surged to a 15-year high in 2024, according to statistics from the Office of the Superintendent of Bankruptcy, underscoring the growing financial distress among Canadians. Ongoing economic uncertainty, including concerns about trade policies and potential tariffs, could further impact household finances in the months ahead. The rising financial strain underscores the need for Canadians to understand their debt relief options and take proactive steps toward stability. 

The survey reveals that while most Canadians agree there’s no shame in seeking help with debt (80%, -4pts from 2019), a significant gap remains between belief and action. Two in five (40%, +9pts from 2019) say the stigma of Bankruptcy prevents them from seeking assistance. The nine-point increase since 2019 highlights ongoing challenges in addressing and dispelling the stigma surrounding Bankruptcy and other similar options.

“It’s troubling that while most Canadians agree there is no shame in seeking debt help, many aren’t willing to act on their advice,” says Bazian. “It’s important to remember you’re not alone in facing financial difficulties. There’s no shame in seeking help — life events like job loss, divorce or health issues can happen to anyone and contribute to financial strain.”

Despite many acknowledging they need help with their debt, three in five (63%) are deterred by fears of debt-relief scams, while two-thirds of Canadians (66%) don’t believe their situation is serious enough to seek debt help. Marking a concerning six-point jump since 2019, far more Canadians (36%, +6pts from 2019) now admit they don’t know how to get out of debt or where to turn for help. More than half (53%, +1pt from 2019) struggle to trust professional companies to assist them. Two in five believe they will never be debt-free (44%).

Age plays a significant role in debt-related issues and behaviours. Younger Canadians aged 18-34 and 35-54 are more likely than those aged 55+ to have difficulty trusting professional debt help companies (62%,  60%, and 40% respectively), think they will never be debt-free (51%, 51%, 34%), need help getting out of debt (56, 51%, 27%) and not know who to reach out to or how to get help for their debt problems (48%, 44%, 22%). Among all age groups, younger Canadians aged 18-34 are the most likely (53%, 45%, 26%) to believe the stigma of Bankruptcy prevents them from seeking help with their debt.

“Resources are readily available, but many Canadians — particularly younger Canadians — are unsure who to trust or where to go for reputable debt-relief guidance,” says Bazian. “The best first step is to speak with a Licensed Insolvency Trustee, the only debt professional regulated by the federal government and authorized to administer Consumer Proposals and Bankruptcies. Contrary to common belief, Licensed Insolvency Trustees don’t just assist with Bankruptcy. They can help people avoid it altogether through Consumer Proposals, debt consolidation, and other budgeting strategies.”

Common misconceptions can compound the stigma for many. A third (35%) of Canadians fear that pursuing debt relief could lead them to lose their home, while more than half (54%) are concerned about the impact of Bankruptcy on their credit score.

“One of the biggest misconceptions about Bankruptcy or insolvency is that people will automatically lose their house or car, but there are legal protections in place,” explains Bazian. “For example, by filing a Consumer Proposal, an individual will hold onto their assets, freeze or eliminate interest, stop wage garnishments and end harassing phone calls from creditors. Provided the individual follows the agreed-upon payment plan, they will be on track to rebuild their credit and become debt-free.”

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

While Canadians 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, a quarter of Canadians (26%) have only paid the minimum payment towards the balance on their credit card, consistent with the last two research waves. Debts continue to build, as about one in five Canadians have delayed or skipped a bill payment (22%), went further into credit card debt this year (20%, -2pts), or paid the minimum payment on their line of credit in the last year (17%, -2pts). Nearly one in five (18%) have sold personal belongings to help make ends meet.

“When people avoid talking about their debt and delay seeking help, they often resort to spending and using credit just to keep up appearances in social settings, which only deepens their financial struggles,” explains Bazian. “The best way to determine the right solution for your financial situation is to speak with a Licensed Insolvency Trustee. They offer free consultations with no strings attached. They are legally required to provide unbiased guidance and present all available debt-relief options to help you regain control of your finances.”

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 Canadians 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, Canadians can subscribe to the MNP 3 Minute Debt Break Podcast for quick, actionable advice to help them better understand their options.

For trustworthy debt advice, Canadians can visit MNP’s extensive network of Licensed Insolvency Trustees for a free consultation in over 200 offices nationwide. Each office delivers personalized, local support, to help Canadians explore their options and start their journey to financial recovery. 

Other Survey Highlights:

• Nearly half feel overwhelmed by the thought of seeking help for their debt (45%).
• Men (43%) are more likely than women (37%) to agree the stigma of Bankruptcy prevents them from seeking help with their debt.
• Canadians aged 35-54 are the most likely to be fearful of debt-relief scams (70%), compared to younger Canadians aged 18-34 (65%) and those 55+ (55%).
• About a third of younger Canadians (31% of 18-34, 32% of 35-54) only paid the minimum on their credit cards compared to 16 percent of those 55+.
• Younger Canadians have higher rates of skipping bill payments (27%, 28%, 12%), selling their belongings (23%, 24%, 10%), and paying only the minimum on lines of credit (17%, 24%, 11%).

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.