If it feels like your money isn’t stretching as far as it used to, you’re not imagining it. Our latest nationwide survey suggests financial pressure has become the day-to-day reality for many Canadians. According to the 2,196 respondents, the results point to widespread strain across the country.
Jump to:
- What are the key findings from the survey?
- Are the costs of essentials still increasing in Canada?
- Tariffs are making people feel more anxious
- What should you do if you feel trapped by debt?
- Speak to an LIT for professional debt help in Canada today
What are the key findings from the survey?
- 87% say they feel financially trapped due to rising living expenses and/or debt
- 85% report their monthly expenses have increased in the past 12 months
- 85% say their household budget is tighter to manage
- 97% say price increases have forced them to rethink how they spend
- 88% have postponed or cancelled plans like travel, major purchases, or life goals
Our findings suggest many Canadians are being squeezed from both sides: everyday essentials are taking up more of the monthly budget while debt payments and interest leave little room to adjust.
As a result, people are constantly recalculating and making trade-offs—thinking twice about routine purchases, cutting back where they can, and delaying plans that used to feel achievable. Over the long term, this pressure creates a sense of living in “catch-up mode”, where one unexpected expense can derail the month and future goals get pushed further out of reach.
“For many people, it is no longer about cutting back on extras. It is about trying to keep up with everyday expenses. When 87% of Canadians say they feel financially trapped, that is a clear signal of how little room there is left in household budgets.” — Joshua Harris LIT
Are the costs of essentials still increasing in Canada?
While Canada’s headline inflation has eased compared to peak levels in 2022, Statistics Canada reported these year-on-year stats between 2024 and 2025:
- Overall inflation: +2.4%
- Food purchased from stores: +5.0%
- Housing: +3.0
- Transport: -0.5% (helped by lower gasoline prices)
These figures help explain why many Canadians don’t feel “relief” even as headline inflation cools compared to previous years. Important daily costs—groceries and housing-related costs—are still putting pressure on monthly cash flow.
“When households are already stretched, anything that threatens higher prices or income stability adds another layer of stress. People are worried not just about today’s bills, but about what comes next.” – Joshua Harris LIT
Tariffs are making people feel more anxious
The survey also found that broader economic concerns are creeping into household stress:
- 73% worry that trade tariffs on imported goods (vehicles, electronics, produce) could further limit their ability to pay down debt.
- 60% are worried about job security or income due to the potential economic impact of tariffs.
What should you do if you feel trapped by debt?
If you feel trapped by debt, there are a few things you can do:
Make sure your essentials are covered
This includes:
- Housing & utilities
- Food & groceries
- Transportation to work
- Medication/childcare
If you’re choosing between these and your minimum debt payments, that’s a sign your budget is under real strain.
Track any noticeable increases over the last 12 months
Most budgets come under strain due to:
- Renewals (e.g., insurance, rent, mortgage, utilities)
- Grocery price creep
- Interest rate changes
- Small “leaks” (e.g., subscriptions, fees, BNPL)
Write down the biggest increases you’ve seen over 12 months. This will tell you where adjustments are needed most.
Talk to a Licensed Insolvency Trustee (LIT)
Licensed Insolvency Trustees (LITs) are federally regulated professionals who can explain your options and offer legally binding ways of reducing your debt. These include Consumer Proposals, which can reduce your debt by up to 80% and let you pay off the remaining amount in monthly instalments.
Speak to an LIT for professional debt help in Canada today
If the rising cost of living has left you feeling overwhelmed, you’re not alone. More and more Canadians are facing financial pressure, whether it’s due to mounting debt, reduced income, or simply trying to keep up with everyday expenses.
At Harris & Partners, our Licensed Insolvency Trustees have been helping individuals and business owners across Canada find real, lasting solutions to their financial challenges.
Whether you’re exploring a Consumer Proposal, considering bankruptcy, or just need expert advice on how to manage your debt, we’re here to help. We’ll take the time to understand your unique situation and guide you through every step with compassion, professionalism, and respect. There’s always a path forward, and it starts with a simple, confidential conversation.
Contact us today to book your free consultation.
This survey was conducted by Harris & Partners in February 2026 and includes responses from 2,196 Canadians aged 18 and older. The study examined cost-of-living pressures, debt stress, spending behaviour, and economic concerns.
