Just The Facts: Canadians are Tapped Out
Ottawa, ON – As the holidays fade and the new year gets into full swing, Canadians are more desperate than ever – facing impossible choices in the months ahead. This month’s MNP Consumer Debt Index found that a whopping 71 per cent of Canadians expect the cost of living to worsen, as pessimism about rising costs “extends well beyond prices, reflecting a broader sense that economic conditions will deteriorate.”
Adding to their economic worries, 41 per cent of Canadians now say they are $200 or less away from bankruptcy. A further 59 per cent are concerned about the unaffordability of housing, while the same number believe the economy will worsen overall. Meanwhile, MNP also found young Canadians “the most likely to feel financially paralyzed”.
No wonder a recent TransUnion study showed that 31 per cent of Millennials and 47 per cent of Gen Z say they plan to take on more debt, and a quarter of all those surveyed said they’re unable to pay one or more of their current bills or loans in full. The same study found that no less than 84 per cent of respondents found “inflation for everyday goods” was a top-three budget concern.
That was backed up by polling by Food Banks Canada, which found 50 per cent of 18 to 24-year-olds reported feeling financially worse off than three months ago, along with 41 per cent of all Canadians. That’s as 28 per cent of young adults say they’ve skipped a meal because of the cost of living.
Another recent survey from TD found that no fewer than 67 per cent of Canadians planned to trim down their budget in the year ahead, up from roughly half at the start of 2025. Most of those surveyed said they would shop and eat out less, while 39 per cent said they would switch to store-brand products and 44 per cent would reduce spending on entertainment.
Mark Carney promised change, but the eleventh year of Liberal mismanagement is even more devastating. Conservatives refuse to accept that Canada must be a country where families have to finance basic purchases with debt or forego them altogether. By ending inflationary Liberal spending and the hidden taxes that drive up the cost of food and other essentials, we can restore the Canadian promise: where hard work means a good life with an affordable home and healthy meals on the table.