CALGARY – BUSINESS NEWS – July 14 2025: Are you feeling the financial heat? For many Canadians the post COVID-19 pandemic economy, coupled with threats of tariffs raised by Donald Trump in his ongoing manic efforts to make Canada the 52nd state, are generating a lot of stress.
Shrinkflation coupled with rising prices have put many Canadians on edge.
Two straight Bank of Canada interest-rate pauses have done little to ease Canadians’ financial unease.
The MNP Consumer Debt Index, compiled quarterly by Ipsos, has stalled at 88 points—roughly the same level as three months ago.
Nearly 64 % of respondents say they “desperately need” rates to come down, while 36 % admit they feel anxious or stressed about money and 26 % say they have put major life plans on hold.
“Many households feel trapped in a financial holding pattern, waiting for clarity before making big decisions,” says Grant Bazian, president of insolvency firm MNP LTD.
Key Findings
| Metric | National | Age 18-34 | Income < $40 K |
|---|---|---|---|
| Feel anxious/stressed | 36 % | 45 % | 44 % |
| Living paycheque-to-paycheque | 32 % | 37 % | 45 % |
| Life plans on hold | 26 % | 33 % | 30 % |
| Building emergency savings | 33 % | 29 % | 24 % |
Younger adults and lower-income households consistently top every stress indicator.
Cautious Spending, Delayed Milestones
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41 % have trimmed discretionary spending.
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27 % are prioritising debt repayment.
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23 % have postponed milestones such as buying a home or starting a family—rising to 33 % among 18- to 34-year-olds.
Bankruptcy Fears Persist
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41 % worry that further rate hikes could push them into bankruptcy (+3 pts).
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Even if rates fall, 45 % remain uneasy about repaying existing debt (+2 pts).
Glimmers of Resilience
The average household now reports $916 left at month-end, up $49 from last quarter—the second-highest buffer since tracking began in 2017. Gains are strongest among:
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Canadians aged 55+ (+$84).
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Households earning $60 K–$100 K (+$260).
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Households $100 K+ (+$129).
Millions Near Insolvency
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42 % of Canadians are within $200 of insolvency each month.
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27 % already fall short of meeting monthly obligations.
Bazian urges those under strain to seek a free consultation with a Licensed Insolvency Trustee—Canada’s only federally regulated debt-relief professionals.
“If sleepless nights and collection calls are routine, it’s time to explore your options,” Bazian advises.
Outlook
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33 % expect their debt picture to improve within 12 months;
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40 % are optimistic on a five-year horizon—yet
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13 % foresee their debt worsening over both timelines.
With inflation stubborn and global volatility high, MNP warns that careful budgeting, early advice, and realistic planning remain critical—especially for younger Canadians and households under $40 K who are “constantly putting out financial fires.”
Solutions?
On Facebook in Thunder Bay, Jim Green has started Manage Your Money. Visit Manage Your Money online for more great tips.
