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Many Manitoba and Saskatchewan Residents Anticipate Higher Living Costs (72%), Rising Housing Pressure (56%), Worsening Economy (53%), and Interest Rate and Inflation Strain (53%) This Year
WINNIPEG, MB – January 12, 2026 – Manitoba and Saskatchewan residents are heading into the new year bracing for mounting financial challenges, with seven in 10 (72%) expecting the cost of living to worsen. According to the latest MNP Consumer Debt Index conducted quarterly by Ipsos, this pessimism extends well beyond prices, reflecting a broader sense that economic conditions will deteriorate in 2026.
“Households across Manitoba and Saskatchewan are heading into 2026 expecting tighter finances, which is adding to broader concern about economic security,” explains Tanya Reynolds, a Licensed Insolvency Trustee with MNP LTD in Winnipeg. “Looking ahead, the outlook for many points to growing pressure on day-to-day expenses, rather than relief.”
More than half believe the economy overall will worsen (53%) this year, and even more expect housing affordability to deteriorate (56%). Manitoba and Saskatchewan residents also anticipate rising pressure from interest rates and inflation (53%), unemployment and the job market (46%), and Canada’s relationship with the United States (55%). Manitoba and Saskatchewan residents believe everyday financial pressures will intensify, with three in five anticipating higher taxes (61%) – more than the other provinces. Additionally, around half expect transportation (53%) and healthcare costs (45%) to worsen. Six in 10 also have concerns about rising poverty and inequality (61%) as well as worsening government deficit and debt (63%).
As Manitoba and Saskatchewan residents remain pessimistic about the year ahead, data shows few signs that household finances are improving. Manitoba and Saskatchewan residents are more likely than any other province (50%) to say they are within $200 of not being able to pay their bills each month, up seven points from last quarter. At the same time, while the average amount Manitoba and Saskatchewan residents have left after monthly expenses has risen by $35 since last quarter to $785, this was the smallest increase among all of the provinces. Additionally, significantly fewer Manitoba and Saskatchewan residents (49%) report having six months of emergency savings, dropping 10 points this quarter, leaving many households vulnerable to disruption.
“Optimism about the year ahead remains limited among Manitoba and Saskatchewan residents, with little evidence that financial pressures are meaningfully easing,” explains Reynolds. “How individuals respond to financial stress often comes down to whether they feel they have any room to maneuver. Those with even modest flexibility may be able to make small budget adjustments or look for help. But for many others facing tight household budgets, ongoing economic uncertainty can push them toward avoidance. As a result, financial strain is driving both attempts to take action and decisions to pull back across the region.”
Financial Fight or Flight: How Manitoba & Saskatchewan Residents Are Responding to Financial Stress
As financial pressures intensify, Manitoba and Saskatchewan residents are responding in markedly different ways. More than half (54%) are adopting a “fight” mentality, taking proactive steps such as adjusting their budgets (39%), attempting to consolidate debt (12%), or seeking advice from a financial professional (10%) as they try to regain control amid ongoing strain. At the same time, one-third of Manitoba and Saskatchewan residents (31%) are taking a “flight” response, including avoiding thinking about their financial responsibilities (11%), steering clear of financial discussions with family or professionals (19%), or relying on credit to cover essential expenses (13%). Meanwhile, fifteen percent (15%) say they feel financially frozen, unsure where to even begin when facing financial stress.
“Financial flight behaviour can be especially risky because it may give the impression that problems are under control, particularly when people feel their situation might be improving,” says Reynolds. “Delaying bills, avoiding conversations about money, or relying more heavily on credit can offer short-term relief, but those behaviours often allow financial challenges to quietly intensify. They can make it more difficult to regain control later on, as Manitobans move into an uncertain year.”
Interest Rate Sensitivity Leaves Manitoba & Saskatchewan Residents Financially Exposed
While the Bank of Canada held its last policy rate at 2.25%, interest rates remain a critical source of stress for Manitoba and Saskatchewan residents. Nearly two in three (62%, unchanged) say they urgently need interest rates to come down. Even then, relief may be limited: nearly half (47%) remain concerned about their ability to repay debt, increasing a significant nine points since last quarter. Moreover, the same proportion (47%) fear that a future increase in rates could push them toward bankruptcy – jumping a staggering 18 points this quarter, by far the largest increase among all of the provinces. For heavily indebted households, these concerns underscore just how thin the margin for financial stability remains as they look ahead to the coming year.
“Looking ahead to 2026, confidence remains especially fragile among Manitoba and Saskatchewan residents, particularly for those carrying higher levels of debt,” says Reynolds. “Increased sensitivity to interest rates, combined with growing concern about repayment, leaves households with very little margin for error.”
Debt Stress Runs High, Yet Professional Help Remains Underused
Despite widespread concern about costs, debt, and the year ahead, relatively few Manitoba and Saskatchewan residents are turning to professional support when facing financial stress. Just one in 10 (10%) says they have sought advice from a financial professional as part of their efforts to fight back against financial strain. Nearly two in five (19%) avoid discussing financial matters with family or professionals altogether, while one in 10 (11%) avoid any kind of thinking about their financial responsibilities.
These findings echo a recent joint consumer alert from the Office of the Superintendent of Bankruptcy (OSB) and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), which highlighted how stress and stigma can prevent Canadians from asking for help and delay access to trusted, regulated guidance from Licensed Insolvency Trustees — professionals qualified to help individuals understand all available options and provide judgment-free support.
“Too many Manitobans continue to try to manage financial stress alone,” says Reynolds. “It’s important they know that there are government-regulated professionals available who can help people better understand their debt-relief options, make informed decisions, and keep financial challenges from becoming deeper.”
Licensed Insolvency Trustees are the only federally regulated professionals in Canada authorized to administer government-regulated debt solutions such as consumer proposals and bankruptcies. They are required to assess an individual’s full financial situation and explain all available options, including non-insolvency alternatives, so Canadians can make informed decisions based on their circumstances.
“Many people don’t realize that all debt advice is not created equal. Dealing with financial stress can make people more vulnerable to quick-fix promises or misinformation,” says Reynolds. “Reaching out to a trusted, federally regulated professional such as a Licensed Insolvency Trustee helps ensure Manitobans receive unbiased guidance on the full range of debt-relief options available to them, based on their unique financial circumstances.”
With more than 200 offices nationwide, MNP LTD’s team of Licensed Insolvency Trustees offer local, personalized and non-judgmental support to help Canadians make sense of their financial options and move forward with clarity during periods of financial distress.
About MNP LTD
MNP LTD, a division of the national accounting firm MNP LLP, is the largest insolvency practice in Canada. For more than 50 years, our experienced team of Licensed Insolvency Trustees and advisors have been working with individuals to help them recover from times of financial distress and regain control of their finances. With more than 240 offices from coast-to-coast, MNP helps thousands of Canadians each year who are struggling with an overwhelming amount of debt. Visit MNPdebt.ca to contact a Licensed Insolvency Trustee or use our free Do-it-Yourself (DIY) debt assessment tools. For regular, bite-sized insights about debt and personal finances, subscribe to the MNP 3-Minute Debt Break Podcast.
About the MNP Consumer Debt Index
The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses, and absorb interest-rate fluctuations without approaching insolvency. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.
Now in its thirty-fifth wave, the Index has made a modest one-point uptick from last quarter to 87 points. Visit MNPdebt.ca/CDI to learn more.
The data was compiled by Ipsos on behalf of MNP LTD between November 28 and December 1, 2025. For this survey, a sample of 2,001 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.7 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
National data is available upon request.
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