Toronto, January 21, 2026, 06:42 EST
- MNP’s Consumer Debt Index reveals that 71% of Canadians anticipate the cost of living will get worse in 2026.
- In Atlantic Canada, 61% expect housing pressures to increase, yet only a small number are turning to financial professionals for help.
- The survey reveals a divide: a large group is trimming expenses and sticking to budgets, yet a significant minority steer clear of financial matters altogether.
Canadians are heading into 2026 bracing for tougher times, with 71% expecting their cost-of-living pressures to worsen, according to the latest Consumer Debt Index from insolvency firm MNP. The data also revealed that 41% are just $200 away from missing bill payments—a state the report terms “financial insolvency.” Nearly 60% responded by taking action, while about a third chose to avoid the problem altogether. “Sustained financial pressure is prompting both decisive action and withdrawal among Canadians,” said Grant Bazian, president of MNP LTD. 1
The timing is crucial. As the year begins, households are recalibrating budgets following a stretch of rising prices and borrowing costs tied to interest rates. A dip in consumer confidence can quickly ripple through spending, credit activity, and missed payments.
The terms “fight” and “flight” aren’t clinical jargon here. They’re a straightforward way to capture stress reactions: some tackle the problem head-on—consolidating debt, trimming expenses, seeking advice—while others avoid it entirely, ignoring the issue until the next bill arrives.
Housing stress in Atlantic Canada is mounting sharply. According to a VOCM survey summary, 61% of Atlantic Canadians expect housing pressures to worsen, 63% foresee tougher times from rising interest rates and inflation, and 53% predict a deteriorating job market. Yet, only slightly more than 10% have reached out to a financial professional for help. “Burying your head in the sand and not opening the mail is just kicking the can down the road,” warned Karen Aylward, a licensed insolvency trustee with MNP. 2
In Ontario, Bayshore Broadcasting highlighted how residents are cutting back on personal spending amid rising expenses. Wes Cowan, a licensed insolvency trustee with MNP, confirmed these worries are justified. 3
It’s not only about money. Canada’s Financial Consumer Agency reports that almost half of Canadians are losing sleep over financial concerns, pointing to high living costs and rising interest rates as key stress factors. 4
For a lot of families, the line between “doing okay” and “not okay” is razor-thin. A slim emergency fund means there’s little wiggle room for unexpected costs, even when bills are technically getting paid.
Sentiment surveys, however, often fluctuate. A more stable job market, falling inflation, or cheaper borrowing could lift spirits fast — yet a sharper slowdown or surprise rate hike might shove more people from tightening budgets into missing payments.
Canada is now divided: one camp is battling to regain control with spreadsheets and phone calls, while the other is dodging the mailbox altogether. That split — fight or flight — will only grow more significant as 2026 unfolds.
