CALGARY, Alberta, July 14, 2025 (GLOBE NEWSWIRE) — Following two consecutive interest rate pauses, the MNP Consumer Debt Index–conducted quarterly by Ipsos–is holding steady at 88 points this quarter. Still, nearly two-thirds of Canadians say they desperately need interest rates to go down, relatively consistent since last quarter (64%, +1pt). Despite the Index stabilizing, ongoing economic uncertainty and the cost of living continue to weigh on households. More than one-third (36%) of Canadians report feeling anxious or stressed about their financial situation, while one-quarter say they feel like they’re having to put their life on hold (26%) or are constantly putting out financial fires, facing one unexpected cost after another (24%).
“Canadians have not witnessed such economic uncertainty since the pandemic. We see some stability in financial perception, but many households feel like their lives are on hold, stuck in a financial holding pattern as they wait for the proverbial dust to settle,” says Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “Given the persistent economic pressures and a backdrop of global volatility, many are hesitant to make major financial or life decisions, unsure of what lies ahead.”
Younger adults and lower-income households are consistently among the most likely to report financial strain and feeling stalled. One-third (33%) of Canadians aged 18-34 say they feel stalled–having to put their lives on hold–while those with household incomes under $40K (30%) are also the most likely to feel stalled. Young Canadians aged 18-34 (45%) and those with household incomes less than $40K (44%) are the most likely to report feeling anxious or stressed about their financial situation. One-third (32%) of Canadians feel stuck living paycheque to paycheque, with those aged 18-34 (37%) and 35-54 (39%), and those earning less than $40K (45%), being the most likely to feel this way. However, younger Canadians aged 18-34 (32%) are also the least likely to say they are feeling cautious with how they manage their money due to current financial pressures, compared to 37% of Canadians overall.
“Even after two interest rate pauses, those making careful choices and delaying major decisions may be struggling to get ahead amid the current uncertainty around costs and income,” adds Bazian. “For many vulnerable households–particularly younger adults and lower-income Canadians–it may feel like they’re constantly putting out financial fires.”
In response to current financial pressures, two in five Canadians (41%) have reduced discretionary spending, one-third (33%) are increasing savings or building emergency funds, and more than one-quarter (27%) are prioritizing debt repayment. Nearly one-quarter (23%) of Canadians are putting important life goals–such as buying a home, starting a family or changing careers–on hold. Younger Canadians aged 18-34 are the most likely to delay these types of milestones (33%).
Future Expectations Mixed Amid Lingering Interest Rate Concerns
Despite interest rates holding steady twice this year, more Canadians this quarter say they are concerned rising interest rates could drive them toward bankruptcy (41%, +3pts). Furthermore, even if rates were to decline, a significant proportion of Canadians (45%, +2pts) remains concerned about their ability to repay debt.
“There are some persistent fears around interest rates,” says Bazian. “For some households, the damage has already been done. After years of rising costs, high interest rates, and depleted savings, there may be some deep anxieties about what could still be to come.”
As Canadians look to the future, one-third (33%, +3pts) expect their debt situation to improve one year from now, and a larger proportion (40%, +1pt) believe it will improve in five years. However, 13% say they expect their debt to worsen over both horizons. Fewer this quarter believe they will be able to cover all living expenses in the next year without needing more debt (54%, -4pts).
Glimmers of Financial Resilience Emerge
Amid economic uncertainty, there are signs that some Canadians are beginning to regain a modest sense of financial control. The average amount households have left at month-end has increased to $916, up $49 from last quarter–marking the second-highest amount recorded since tracking began in 2017, potentially signalling that more Canadians are building a financial buffer in case of further economic disruption.
Increases were most pronounced among older Canadians aged 55 and over (+$84) and those in middle to higher-income households. Households earning $60K to under $100K reported the most significant jump (+$260), followed by those earning $100K or more ($129).
Canadians’ net personal debt rating (positive subtract negative) held relatively steady at 21 points (-1pt), maintaining gains made earlier this year after rebounding from a record low of eight points in December 2024.
“These are small but encouraging signs that some households may be regaining a bit of financial footing,” says Bazian. “While challenges remain, any movement toward greater stability is meaningful in this environment.”
Millions Remain Close to Insolvency
However, while some households are managing to set a little more aside, a significant proportion of Canadians remain on precarious financial footing.
“About 14 million Canadians say they are close to financial insolvency, with little to no room to absorb an unexpected expense or income disruption,” says Bazian.
Two in five Canadians (42%, -1pt) report they are $200 or less away from financial insolvency each month. That includes more than a quarter (27%, +1pt) who say they already don’t make enough to cover their bills and debt payments.
Bazian urges those feeling overwhelmed by debt or financial pressure to speak with a Licensed Insolvency Trustee–Canada’s only federally regulated debt professionals who can provide unbiased advice on the full range of debt relief options available and administer solutions including consumer proposals and bankruptcies.
“Whether you’re missing payments, dealing with collection calls, or just unsure how to get back on track, Licensed Insolvency Trustees can help you understand your options,” says Bazian. “These professionals are there to help you understand your financial position and explore all your options in a judgment-free environment.”
This quarter, nearly half of Canadians (46%) say they regret the amount of debt they have taken on, increasing three points, and two in five (44%, +2pts) are concerned about their current debt level.
Bazian says if financial stress is causing sleepless nights, it’s a sure sign it’s time to ask for help. “Many people are facing the same struggles right now. Just reaching out–even to better understand your options–can lift a huge weight off your shoulders. Getting advice early can make all the difference.”
MNP’s team of Licensed Insolvency Trustees offers free consultations across more than 200 offices from coast to coast, providing personalized, non-judgmental advice to Canadians in financial difficulty.
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 Canadian 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 33rd wave, the Index has held firm at 88 points – the same as last quarter. Visit MNPdebt.ca/CDI to learn more.
The data was compiled by Ipsos on behalf of MNP LTD between June 9 – 13, 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.
Provincial data is available upon request.
CONTACT
Angela Joyce, Media Relations
p. 1.403.681.9286
e. angela.joyce@mnp.ca
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/49cec5f7-a5e2-4898-b9c4-f0f4889241a8