What MNP found
MNP's Consumer Debt Index asks Canadians each quarter how they feel about their debt, their income and their ability to absorb a shock. The October reading rose four points to 95, which MNP calls an improvement from a low base. The findings underneath it describe people with little room to manoeuvre.
Just over four in ten Canadians said they were within $200 of not being able to pay their monthly bills. That is a small improvement on the summer reading, but it means a car repair or a short gap in pay would push a large share of households into borrowing.
The new worry in this wave is work. More than half of working Canadians said they were worried about job mobility and career opportunities. One in five would like to change jobs but do not feel secure enough to risk a period of lower income. Just over half said they could not support their household for six months without borrowing if they lost their job.
Almost half of Canadians said they had tried to earn extra income in the past year, most often by selling goods online.
Interest rates have held steady, and the survey shows that has not changed how people feel. Six in ten still said they desperately needed rates to fall further. More than four in ten were worried about repaying their debt even if rates came down.
| What MNP found | What it means if you are thinking about borrowing |
|---|---|
| 44% are within $200 of missing monthly bills | A loan payment has to fit inside that $200, or it replaces one problem with another |
| 54% could not cover six months without borrowing after a job loss | An emergency fund is the thing most people are missing, and a loan is what fills the gap when it is missing |
| 55% of workers worry about job mobility | Lenders look at income stability, and so should you before taking on a fixed payment |
| 47% tried to earn extra income this year | Extra income counts for some lenders if it is regular and documented |
| 43% worry about repaying debt even if rates fall | A rate cut lowers the payment only a little, so check the total you would owe before you borrow |
The survey was run by Ipsos for MNP between September 1 and 8, 2026, with about 2,000 Canadian adults. All figures are self-reported.
What we see
MNP surveyed the adult population. Our data covers only people who decided to apply for a loan, so it shows what the pressure MNP describes looks like once someone acts on it.
The amounts are small. Across Smarter Loans personal loan applications from July 2026 to September 2026, 66% of requests were under $1,500, and the average small request was $487. Paying off bills was the most common reason to apply, at about a third of applications.
Behind those requests sits a larger debt. Smarter Loans applicants from August 2025 to July 2026 reported $13,410 in unsecured debt on average. In Smarter Loans applications from July 2026 to September 2026, debt consolidation drew the largest installment requests of the common purposes, at $8,574 on average.
Most applicants describe their credit as fair or low. Fair was the largest self-reported band in every province with enough applications to report, except Saskatchewan and New Brunswick, where low credit led.
| MNP found | Among people who apply through Smarter Loans |
|---|---|
| 44% are within $200 of missing a monthly bill | Paying off bills is the most common reason to apply; two thirds of requests are under $1,500 |
| 36% could not absorb a job loss or wage change without more debt | Smarter Loans applicants from August 2025 to July 2026 reported $13,410 in unsecured debt on average |
| 43% worry about repaying debt even if rates fall | In Smarter Loans applications from July 2026 to September 2026, debt consolidation drew the largest installment requests of the common purposes, $8,574 on average |
| 47% have tried to earn extra income | Most applicants describe their credit as fair or low, which limits where they can borrow |
Our take
MNP's finding that people are afraid to change jobs matters most for borrowers. Someone who will not risk a gap in income is also someone for whom a long repayment term is a bigger commitment than the monthly figure suggests. The small requests in our data look like people borrowing the minimum they can get away with.
The rate story matters less than it seems. MNP found four in ten worried about repaying even if rates fall, and our applicants carry debt that a rate cut barely touches. A quarter point off a $13,000 balance changes the monthly payment by a few dollars.
The second-income finding is the hopeful one. Nearly half of Canadians have tried to earn more, and extra income that is regular and documented counts with many lenders. Grant Bazian, MNP's president, put it this way: “There is a meaningful difference between earning extra money to get ahead and depending on it to keep up.”
What this means if you are borrowing
- Work out the payment before the amount. If you are within $200 of your monthly limit, the payment has to fit inside that $200 or it creates the problem it was meant to solve.
- Keep the term short if your job feels uncertain. A shorter term costs more each month and less in total, and it ends sooner if your income changes. Our guide to finding the best loan rates shows how to compare on total cost.
- If your credit is fair or low, lenders in our network look at income and existing payments more than the score. Our guide to getting a personal loan with bad credit explains what they check.
- If one unexpected bill would tip you over, read are emergency loans a good idea before applying. The free options in it come first.
Frequently asked questions
What did the MNP Consumer Debt Index find in October 2026?
The index rose 4 points to 95, though MNP notes confidence is still below its historical levels. 55% of working Canadians told MNP they worry about job mobility. Nearly half, 44%, report being within $200 of what they owe each month.
What does MNP mean by the brink of insolvency?
MNP uses the phrase for anyone with $200 or less of room before they cannot meet their monthly financial obligations. 44% of respondents were in that position, down 2 points from the previous quarter.
How does this compare with people who apply for loans online?
Among Smarter Loans applicants from July 2026 to September 2026, 66% of requests were under $1,500, and paying off bills was the most common purpose. Most applicants describe their credit as fair or low, and debt consolidation draws some of the largest requests.
Who ran the survey and how accurate is it?
Ipsos polled 2,001 Canadians aged 18 and over on behalf of MNP LTD, with fieldwork between September 1 and 8, 2026.
About this study
MNP LTD published the MNP Consumer Debt Index on October 5, 2026, from a poll conducted by Ipsos. Ipsos interviewed a sample of 2,001 Canadians aged 18 years and over between September 1 and 8, 2026. Ipsos states that the poll is accurate to within ±2.7 percentage points, 19 times out of 20, had all Canadian adults been polled.
MNP's own release is on GlobeNewswire, and the poll is on Ipsos Canada's page for the MNP Consumer Debt Index. Request-size figures from Smarter Loans cover requests made between July and September 2026. The other Smarter Loans figures cover personal loan applications between August 1, 2025 and July 31, 2026. Amounts are as requested at application, and credit band is self-reported. Our other reports from the same application data are collected at Smarter Loans Research.
Written by:
The Smarter Loans Editorial Team produces in-depth, original content to help Canadians navigate borrowing, credit, and personal finance with confidence.
