The recent Consumer Debt Index shows that people in Ontario are preparing for more money troubles this year.
According to MNP LTD’s latest quarterly index, which was released this week, most residents of Ontario are anticipating a tighter budget in 2026.
Among those surveyed for the index, put together by Ipsos, 72 per cent believe the cost of living will increase this year.
“There is an expectation across Ontario that household finances will face added pressure, contributing to ongoing concern about economic security over the year ahead,” said MNP’s Caryl Newbery-Mitchell. “Many Ontarians expect more financial strain across daily expenses in 2026 rather than improvement.”
Fifty-eight per cent of respondents thought the economy would take a downturn, while 59 per cent were worried about fewer housing options.
The current trade situation with the United States was also factored into the latest index, with 52 per cent of those surveyed expecting added pressure. Respondents expressed worries about increased taxes, rising poverty and inequality, as well as growing government deficits.
“Prolonged financial pressure is leading to both action and hesitation among Ontarians,” said Newbery-Mitchell. “How Ontarians respond to financial stress often depends on whether they feel they have any flexibility to work with. Additional room allows some to make budget adjustments and explore options to manage their debt. Ongoing economic uncertainty continues to reinforce debt avoidance for others.”
The index found that Ontarians are responding differently to financial challenges. About 58 per cent have taken a “fight” approach by adjusting their spending habits, trying to consolidate their debts, and seeking help from a debt counselor or financial advisor.
An additional 28 per cent have chosen a “flight” response by ignoring financial issues or relying too much on credit. Thirteen per cent say they feel “frozen”, unsure of what steps to take next.
The poll was conducted between November 28 and December 1, 2025, with Ipsos interviewing 2,001 Canadians aged 18 and older, resulting in a margin of error of 2.7 percent.
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