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 …