2024: The Year of Debt Despair?

According to the release this week of MNP Consumer Debt Index Canadian’s current debt perception has reached near all time lows.

This marks the second-lowest level in five years as the impact of inflation and higher interest rates leaves Canadians feeling pessimistic about their current debt situation.

Highlights from this quarter’s survey include:

  • More are concerned about their ability to repay their debts (63%), regret the amount of debt they’ve taken on (47%), and are concerned about their current level of debt (47%).
  • The number of Canadians making only minimum payments on credit cards (26%) or on line of credit (19%) has jumped since 2021.
  • One in five (18%) say they took from savings, home equity, RSP, or alternative methods to pay debt or day-to-day expenses in the last year.
  • Canadians say their financial situation is taking a toll on their mental health, causing them anxiety (60%), stress (59%), isolation (48%), or embarrassment (40%).

Interest rates likely contribute to Canadians’ concerns about their ability to repay their debts — and many continue to feel negatively about their ability to absorb potential interest rate increases. The additional pressure of holiday bills coming due, mortgage renewals approaching, and rising costs may continue to increase financial strain and take a toll on Canadians’ mental health. Many could be approaching a crisis point both mentally and financially.


Read the full report here