MNP Consumer Debt Index sinks to 86 as basics get cut
Thunder Bay – NEWS – Canadians’ financial vulnerability is worsening, with the MNP Consumer Debt Index sliding two points to 86—its lowest September reading since 2023. Growing numbers report making painful trade-offs: 29% have reduced utility consumption (+5 pts YoY) and 24% say they are eating less to save money (-4 pts YoY). Nearly half (48%) are within $200 of insolvency each month (+6 pts QoQ), and the average cushion after bills has fallen to $744 (from $916). Fewer than half (46%) have six months of emergency savings, leaving many households exposed as winter heating costs approach.
“Some households are stretched so thin that even basic expenses feel overwhelming,” says Grant Bazian, president of MNP LTD. “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.”
Where Canadians are cutting back
Beyond heat and food, Canadians are changing daily habits to cope. 51% are grocery shopping more strategically (meal plans, bulk buying, coupons, price matching). 45% are avoiding impulse purchases and 41% have stopped dining out or ordering takeout. Alarmingly, 19% are delaying or skipping medical, dental, or prescription care, signaling strain that reaches into health and well-being.
Savings cushions thin; younger and middle-income hit hardest
Even with these cutbacks, buffers are eroding. Those aged 18–34 now have just $651 left after monthly expenses (-$269), while $60K–<$100K earners average $727 (-$397). With 48% within $200 of not covering monthly bills, a single unexpected cost can trigger reliance on high-interest credit, increasing the risk of a debt spiral.
Job insecurity and AI worries amplify the pressure
Confidence in handling a job loss fell this quarter, and 44% worry AI could negatively affect their job or income. Concern is highest among younger Canadians (56% of 18–34) and households under $40K income (49%), compared with 34% of those 55+ and 36% of those earning $100K+. With fewer than 46% having six months of savings, many households lack the safety net to weather a disruption.
Outlook darkens despite rate relief
Canadians’ net personal debt rating dropped to +18—the weakest September score since 2023. Only 37% rate their debt situation as “excellent,” while 19% call it “terrible.” Although the Bank of Canada held rates at 2.75% during fieldwork and cut to 2.5% shortly after, 63% say they desperately need rates to go down, and 44% remain concerned about repaying debt even if rates fall. 42% worry future rate increases could push them toward bankruptcy. Expectations are sliding: 26% (-7 pts) expect their debt situation to improve in the next year; 36% (-4 pts) over five years.
Plans for the next 12 months: few levers left
Canadians appear to be running out of options. 30% have no plans to save more, and only 15% intend to start or revise a household budget. One in ten are considering relocating to more affordable housing (10%) or eating less (10%, +3 pts). Another 12% plan to reduce utility consumption—a worrying signal heading into winter as “heat or eat” choices become entrenched.
Thunder Bay/Northwestern Ontario angle: winter reality bites
With natural-gas and electricity costs top of mind, Northern households—often facing longer, colder winters and higher transport costs for goods—are especially exposed.
Local service providers report rising demand for food banks, energy-bill assistance, and credit counseling. Residents should watch for winter energy relief programs, home-efficiency grants, and bill-management plans from utilities—small supports that can prevent cost spikes from becoming debt crises.
Getting help: know your options
Licensed Insolvency Trustees (LITs) offer free, confidential consultations and are the only federally regulated professionals who can administer Consumer Proposals and Bankruptcies. Early advice can protect assets, stop interest from ballooning, and map a path back to stability.
Methodology (from MNP/Ipsos)
Findings are from the 34th wave of the MNP Consumer Debt Index, conducted by Ipsos Sept 4–9, 2025 among 2,001 Canadians (18+). Results are weighted to census benchmarks. The credibility interval is ±2.5 pts (19 times out of 20); wider for subgroups.
