Canadians caught in rolling debt cycle
Close to half of respondents (46%, up three points from last quarter) say they are $200 or less away from being unable to meet monthly debt obligations, with 28% reporting they simply do not earn enough to cover their bills and debt payments.
“Many Canadians are not just living paycheque-to-paycheque, they are entering each pay period with much of that paycheque already spoken for,” says Grant Bazian, president of MNP LTD, Canada’s largest insolvency firm, operating through more than 200 offices coast to coast.
“That may help people stay current in the short term, but it can also create a rolling shortfall, where each paycheque is used to catch up from the last one.”
The findings arrive as Canadian insolvencies hit a 17-year high in the first quarter of 2026, with homeowner insolvency volumes rising more than 11% in a single quarter.
Spending cutbacks cut deeper than budgets
More than one in three (35%) are trimming spending on personal care, children’s activities, and clothing.
