Two in five New Brunswickers fear they may never be debt-free, acknowledge needing help, but are too embarrassed to seek it out

• Mounting debt forces bad financial habits: About one in five have taken on more credit card debt (22%), paid only the minimum on credit cards (18%), or missed payments (15%).
• Three in 10 feel the stigma of bankruptcy prevents them from seeking help (30%).
• Three in 10 say they don’t know how to get out of debt or where to turn for help (29%).

March is Debt Literacy Month, aiming to educate, empower, and break the stigma amid rising consumer debt

MONCTON, NB – March 3, 2025 – Mounting financial pressures are driving some Atlantic 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 Atlantic Canadians acknowledge they need help to get out of debt (43%). Yet about the same proportion (42%, -5pts from 2019) say they would be embarrassed to seek help if their financial situation was bad enough to consider Bankruptcy. While this figure has seen a modest improvement since 2019, stigma continues to pose significant barriers to seeking debt relief.

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

“Some people feel like there’s nowhere to turn because dealing with debt can be a very isolating burden,” says Tara Silliker, a local Licensed Insolvency Trustee with MNP LTD. “Debt Literacy Month is about empowering Atlantic Canadians with the information they need to push past stigma, make confident financial decisions, and work toward a debt-free future.”

The survey reveals that while most Atlantic Canadians agree there’s no shame in seeking help with debt (78%, -8pts from 2019), a significant gap remains between belief and action. Three in 10 (30%, +2pts from 2019) say the stigma of Bankruptcy prevents them from seeking assistance, underscoring the need to address and dispel this stigma surrounding Bankruptcy and debt help.

“While a large proportion of Atlantic Canadians believe there’s no shame in asking for debt help, some still hesitate to follow their advice and take that crucial first step due to the stigma surrounding Bankruptcy,” says Silliker. “It’s important for people to understand they’re not alone and that there’s no shame in asking for help. Circumstances like job loss, health issues, or relationship breakdowns can happen to anyone and often contribute to financial strain.”

Despite many acknowledging they need help with their debt, more than half (55%) are deterred by fears of debt-relief scams, while seven in 10 (69%) don’t believe their situation is serious enough to seek debt help. Three in 10 Atlantic Canadians (29%, -3pts from 2019) admit they don’t know how to get out of debt or where to turn for help, and nearly half (45%, -5pts from 2019) struggle to trust professional companies to assist them. Two in five (42%) believe they will never be debt-free.

“While resources are readily available, some Atlantic Canadians are still grappling with who to trust for reputable debt-relief advice,” says Silliker. “A Licensed Insolvency Trustee is the right place to start. They’re the only federally regulated debt professionals authorized to administer Consumer Proposals and Bankruptcies. Their role goes beyond just Bankruptcies — Licensed Insolvency Trustees can also help individuals avoid Bankruptcy through strategies like debt consolidation, budgeting advice, and Consumer Proposals.”

Common misconceptions can compound the stigma for many. A third (32%) of Atlantic Canadians worry that pursuing debt relief could lead them to lose their home, while nearly half (45%) are concerned about how Bankruptcy would affect their credit score.

“There is a misconception about Bankruptcy or insolvency that people will automatically lose important assets like their house or vehicle,” explains Silliker. “However, it should be noted that there are legal protections. By filing a Consumer Proposal, for example, you will hold onto assets, halt wage garnishments, stop or eliminate interest, and end the harassment of creditor calls. Provided you follow the payment plan, you’ll be on track to become debt-free and begin rebuilding your credit.”

Silliker adds that while individuals often worry about how Bankruptcy would affect their credit score, she points out that struggling with overwhelming debt for a prolonged period can also hurt their credit score. After a Bankruptcy or Consumer Proposal, individuals can start over and rebuild their credit score.

While Atlantic 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, about one in five Atlantic Canadians went further into credit card debt (22%, -9pts from 2023) or only paid the minimum payment towards the balance on their credit card (18%, -13pts). Debts continue to build for some, as nearly one in five Atlantic Canadians have delayed or skipped a bill payment (15%) or have paid the minimum payment on their line of credit in the last year (15%, -11pts). One in 10 (12%) have reportedly sold their personal belongings to help make ends meet. While the declines since 2023 suggest some improvement in financial behaviours, some Atlantic Canadians’ continued reliance on short-term fixes indicates they are still grappling with significant financial pressures.

“Individuals sometimes hold back from seeking help because they fear judgement and often fall back on credit to maintain their spending and preserve their social image,” explains Silliker. “This can make financial challenges even worse. To help individuals explore their options, Licensed Insolvency Trustees offer free, confidential consultations with no obligation. They are legally required to offer impartial guidance on all available debt-relief options so you can find the right solution for your unique situation.”

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 Atlantic 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, Atlantic Canadians 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 who are 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.