MNP Consumer Debt Index falls to 86 points, reflecting Canadians’ growing financial vulnerability
- Three in 10 (29%, +5 pts YoY) Canadians say they have reduced their utility consumption, while a quarter (24%, -4 pts YoY) report eating less to save money.
- Nearly half are within $200 of insolvency each month (48%, +6 pts QoQ), with the average amount left after monthly expenses decreasing to $744 from $916.
- Fewer than half report having six months of emergency savings (46%), leaving many households highly exposed to disruption.
- More than two in five Canadians (44%) worry that AI could negatively affect their job or income.
CALGARY, Alberta, Oct. 06, 2025 (GLOBE NEWSWIRE) — According to the latest MNP Consumer Debt Index data, Canadians’ financial vulnerability is intensifying as persistent economic uncertainty, concerns about borrowing costs, and employment anxiety weigh on household confidence. Faced with mounting financial pressure, many indebted Canadians are being forced into difficult “heat or eat” decisions — choosing between necessities such as heating their homes and putting food on the table. Three in ten (29%, +5 pts YoY) Canadians say they have reduced their utility consumption, while a quarter (24%, -4 pts) report eating less to save money. These stark trade-offs reflect the deepening strain on household budgets, particularly as winter heating costs loom.
The Index dropped two points to 86 this quarter — its lowest September reading since 2023, underscoring how fragile Canadians’ financial situations have become.
“Some households are stretched so thin that even basic expenses feel overwhelming,” says Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “When people are cutting back on food, heat, or medical care, it’s not just about budgeting anymore — it’s about day-to-day survival. That level of strain takes a huge emotional toll.”
Beyond heating and food, Canadians are cutting back in other ways. More than half (51%, unchanged YoY) say they are grocery shopping strategically by using meal plans, bulk buying, coupons, and price matching. More than two in five are avoiding impulse purchases (45%, -1 pt) and have stopped dining out or ordering takeout (41%, -3 pts). One in five (19%) are also delaying or skipping medical, dental, or prescription care, highlighting how financial strain is affecting households’ well-being.
Even with these sacrifices, financial cushions are shrinking. Nearly half (48%) of Canadians report they are within $200 of being unable to pay their bills each month, climbing six points since last quarter. At the same time, the average amount left over after monthly expenses has fallen to $744 from $916. Younger Canadians and middle-income earners ($60K to <$100K) experienced the steepest declines, with those aged 18–34 left with only $651 (-$269) and middle-income earners averaging $727 (-$397).
“Canadian households are now left with so little at the end of the month that even a …