Study: Nearly Half of Canadians Regret Debt
As part of Debt Literacy Month, a new report reveals that 47% of Canadians regret their financial debt. The five-year tracking study from Ipsos and MNP LTD shows that debt concern remains high and financial literacy is lagging, leaving many vulnerable to economic shifts.
The MNP Consumer Debt Index, which gauges Canadians' feelings about their debt, rose slightly to 87 points at the end of 2025. Despite this, a majority of Canadians are bracing for a tough 2026, with 71% expecting the cost of living to worsen. This widespread financial anxiety is not new; the national debt-to-income ratio has surged from 66% in 1980 to over 170%. This means for every dollar of disposable income, the average Canadian household owes more than $1.70. The primary driver for this increase is mortgage borrowing, which now constitutes the largest part of household debt. The study highlights a significant "debt literacy" gap, as one in five Canadians admit they don't fully understand how interest rate changes affect their finances. This is particularly concerning as more than two-thirds of Canadians don't know that credit card interest is calculated daily. A lack of financial education in schools is a contributing factor, with 64% of Canadians reporting they never received any. The burden of debt is felt most acutely by younger generations. Both Gen Z and Millennials report the highest levels of concern about their current debt, at 55%. Furthermore, 59% of Millennials regret the amount of debt they've taken on, the highest of any age group. In response to financial pressures, over half of Canadians are changing their grocery shopping habits by using coupons, buying in bulk, and creating meal plans. Many are also cutting back on non-essential spending, with 45% avoiding impulse buys and 41% eliminating dining out and takeout. Despite the grim outlook, there are some positive signs. At the end of 2025, the average amount of money Canadians had left after monthly expenses rose to $907, an increase of $163 from the previous quarter. Additionally, 41% of Canadians reported being $200 or less away from insolvency, which, while high, is an improvement of seven percentage points from the prior quarter and the lowest this figure has been in the post-pandemic era.
