CALGARY, Alberta, April 13, 2026 (GLOBE NEWSWIRE) — Many Canadians are feeling the effects of ongoing economic uncertainty as conditions continue to evolve, reshaping household behaviours. According to the latest MNP Consumer Debt Index conducted quarterly by Ipsos, three in five (61%) say they are experiencing ‘financial whiplash’ as shifting conditions repeatedly disrupt their financial plans, while nearly three-quarters (74%) say rising prices for essentials like food and gas are straining their finances. Against this backdrop, nearly three-quarters (73%) say they are cutting back on spending, and more than four in five (84%) are more cautious about taking on new debt, as ongoing cost pressures and uncertainty drive conservative financial decision-making.
These pressures are also shaping how Canadians view their financial progress and future plans. Three in five (64%) say they feel they are working harder financially but not getting ahead, while seven in 10 (69%) say they are delaying major financial decisions because conditions feel unpredictable.
“Many Canadians are not just feeling financial pressure, they are navigating an environment that continues to shift, increasing uncertainty and making it more difficult to plan, budget, and stay ahead financially,” explains Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “Rising everyday costs and broader global uncertainty are outside of an individual’s control, creating a sense of ‘financial whiplash’. When conditions feel unpredictable, it becomes harder to absorb unexpected expenses or make confident financial decisions, whether that’s taking on new debt, making a large purchase, or planning for the future.”
While the overall Index remains unchanged at 87 points, holding steady over the past year and reflecting a continued ‘wait and see’ approach, this apparent stability may be masking underlying financial pressures for many households, as Canadians continue to navigate an endurance economy where financial challenges persist without a clear endpoint. Canadians’ net personal debt rating edged up slightly from the previous quarter to 18 points (+1 pt) but still represents the lowest first-quarter debt rating in the Index’s history, underscoring ongoing financial strain as concerns about job security, inflation, and broader economic conditions continue to weigh on consumer sentiment.
Compared to a year ago, nearly one-quarter of Canadians (24%) say their debt situation has improved, while one in five (19%) say it has worsened, both unchanged from last quarter. This lack of movement highlights how many Canadians feel stuck with little progress in improving their financial position, as financial pressures persist and concerns about job security continue to rise, with nearly four in 10 (39%, +2 pts) fearing job loss in their household.
Financial pressures remain uneven as many households still face limited flexibility
The average amount Canadians have left at month-end has risen to an all-time high of $1,000, up from $907 last quarter, suggesting some improvement in overall financial flexibility. However, these gains are not being felt equally across all households. More than four in 10 (43%) say they are within $200 or less of not being able to meet their monthly financial obligations, up two points from last quarter, while nearly one-third (29%, +4 pts) say they already do not earn enough to cover their bills and debt payments.
While the Bank of Canada’s recent decision to hold its key rate at 2.25% may ease distress for some Canadians, three in five (61%, -3 pts) still say they need interest rates to come down. With the future direction of rates remaining uncertain, more than half (53%, -1 pt) fear financial trouble if rates rise, and four in 10 (42%, -2pts) are concerned rising rates could move them toward bankruptcy. Nearly half (45%, -3pts) say that even if rates decline, they remain concerned about their ability to repay their debts. Even small increases in interest rates could have an impact, as just one in five (20%) say they could absorb an additional $130 in monthly interest payments, while nearly one-third (32%) say they could not.
“Even with rates holding steady for now, many Canadians remain uneasy about what comes next,” says Bazian. “With uncertainty around the path of interest rates later this year, households already managing tight budgets may have limited capacity to absorb higher borrowing costs or even sustain them at current levels.”
Tax season highlights ongoing financial strain for Canadians
These financial pressures are also reflected in how Canadians are approaching tax season.
One in six Canadians (16%) say they expect to owe taxes they are unable to pay. This includes one in 10 (10%) who will delay paying, as they need more time to figure out how they will come up with the funds, and six percent who say they will need to borrow or go into debt to meet their obligations. One in 10 (11%) say they expect to owe and will be able to pay, but will need to dip into savings or money set aside for other purposes to pay it.
Younger Canadians are particularly affected, with one in five (21%) of those aged 18 to 34 reporting they are unable to pay their expected tax bill and will need to figure out how to pay it or go into debt, highlighting heightened financial strain among the younger demographic.
“Tax season can act as a real test of household finances,” says Bazian. “For some Canadians, a refund may offer a chance to catch up on bills or pay down debt. For others, owing money may mean dipping into savings or taking on additional debt, which can add to longer-term financial pressure.”
Bazian says that turning to additional debt to cover expenses and obligations can be an early sign that financial pressures are coming to a head, and that it may be time to take a closer look at your financial situation.
“When things feel uncertain or out of your control, it can be overwhelming to know where to start,” says Bazian. “But when someone finds themselves relying more on credit or stretching their finances to keep up with expenses, it can be a helpful moment to pause and reassess. No matter what’s happening in the economy, there are still steps people can take to better understand and manage their finances, including looking at what’s coming in, what’s going out, and where there may be options to ease the pressure.”
“For those who feel stuck or unsure, speaking with a Licensed Insolvency Trustee can provide clarity and reassurance,” Bazian adds. “These conversations are designed to help individuals understand their full financial picture in a supportive, non-judgmental environment, so they can explore their options and move forward with a plan that fits their situation.”
Licensed Insolvency Trustees are the only federally regulated debt professionals in Canada and are required to review an individual’s full financial situation and explain all available options. They work with individuals to understand their unique circumstances and explore a range of solutions, from adjusting payment plans and negotiating with creditors to formal debt relief options such as consumer proposals or bankruptcies, offering clear, unbiased guidance so Canadians can move forward with greater confidence and without judgment.
With more than 200 offices nationwide, MNP’s team of Licensed Insolvency Trustees offer local, personalized, and non-judgmental support to help Canadians understand their financial options and move forward with clarity during periods of financial uncertainty.
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-sixth wave, the Index is holding steady since last quarter at 87 points. Visit MNPdebt.ca/CDI to learn more.
The data was compiled by Ipsos on behalf of MNP LTD between March 10 to 11, 2026. 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 ±2.7 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
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