Canadians are experiencing ‘financial whiplash’ and struggling to keep up with their payment obligations as economic uncertainty persists, according to a new report from insolvency specialists MNP Ltd.

MNP’s latest

consumer debt

index survey said 61 per cent of respondents are feeling rattled by the shifting economic conditions repeatedly disrupting their financial plans. Three-quarters of respondents said the high cost of food and gas is straining their finances, and that they are looking to cut back on spending and avoid taking on new debt.

“Many Canadians are not just feeling financial pressure, they are navigating an environment that continues to shift, increasing uncertainty and making it more difficult to plan, budget and stay ahead financially,” said Grant Bazian, the president of the country’s largest insolvency firm.

These pressures are also shaping how Canadians view their financial progress and future plans. Nearly 64 per cent said they are working harder but not getting ahead financially, while 69 per cent said they are delaying major financial decisions due to ongoing uncertainty.

According to the report, the spike in daily living costs and general global instability are beyond an individual’s control, leading to what MNP Ltd. calls “financial whiplash.” The constant unpredictability makes it difficult for people to handle surprise costs or feel secure in making major moves, such as taking on additional debt, making large purchases, or mapping out long-term financial goals.

The overall MNP consumer debt index remains unchanged at 87 points, holding steady over the past year. The index, measured on a 100-point scale, reflects Canadians’ attitudes about their ability to manage debt and financial obligations. The report said the stable measurement may indicate a “wait-and-see” approach and could be masking underlying financial pressures for many households.

Compared with a year ago, 24 per cent of Canadians say their debt situation has improved, while 19 per cent say it has worsened. Meanwhile, 39 per cent report concern about potential job loss within their household.

Nearly 43 per cent of Canadians report being just $200 away from failing to meet their monthly financial obligations.

Although the average “buffer” – money left over at month-end – has risen to an all-time high of $1,000, this figure does not reflect all households equally. While some are finding their footing, 29 per cent of Canadians said they already do not earn enough to cover their basic bills and debt payments.

The uncertainty surrounding interest rates is adding to their anxiety. Although the

Bank of Canada

has held its key rate steady at 2.25 per cent, most Canadians are not reassured. Sixty-one per cent say they still need rates to come down, and more than half fear financial trouble if rates rise again.

Tax season is also identified as a period of financial pressure. One in six Canadians expects to owe taxes they cannot afford to pay. For some, this means delaying payment; for others, it means taking on more debt or dipping into already strained savings. Younger Canadians, particularly those aged 18 to 34, are feeling this pressure most acutely, with one in five unable to cover their expected tax bill.

“Tax season can act as a real test of household finances,” said Bazian. “For some Canadians, a refund may offer a chance to catch up on bills or pay down debt. For others, owing money may mean dipping into savings or taking on additional debt, which can add to longer-term financial pressure.”

Bazian said turning to additional debt to meet expenses can be an early sign of mounting financial pressure and may prompt a review of personal finances.

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The MNP consumer debt index is based on a survey of 2,000 Canadians aged 18 and older, conducted by Ipsos between March 10 and 11, 2026. The results are weighted to reflect the national population and have a margin of error of ±2.7 percentage points.