Three in five Quebecers concerned interest rates may not fall quickly enough to provide the financial relief they need — more than any other province

• Seven in 10 say they desperately need interest rates to go down (69%).
• Three in five say interest rates will need to drop much further before their financial situation significantly improves (60%).
• More than half agree they are still concerned with their ability to repay their debts, even if interest rates decline (54%).
• Nearly half feel they are so heavily in debt that even lower interest rates would offer little relief, more than those in any other province (46%).

MONTREAL, QC – July 22, 2024 – Quebecers are feeling more pessimistic about their personal finances this quarter, despite the recent interest rate cut by the Bank of Canada. The MNP Consumer Debt Index finds more than three in five (63%) Quebecers are concerned that interest rates may not fall quickly enough to provide the financial relief they need — more than those in any other province. Three in five say interest rates will need to drop much further before their financial situation significantly improves (60%). Seven in 10 (69%) say they desperately need interest rates to go down. 

“Quebecers may have hoped for a quicker impact from the recent interest rate cut or a more significant reduction. This results in some feeling disheartened,” says Frédéric Lachance, a Licensed Insolvency Trustee with MNP LTD in Montreal. “With the prices of many daily necessities still high, many individuals have not seen the meaningful decrease in their monthly expenses needed to reduce their financial strain." 

After two years of aggressive interest rate hikes, three in five (61%) Quebecers say high interest rates have had a negative impact on their household finances. More than half (54%) agree they are still concerned with their ability to repay their debts, even if interest rates decline. Notably, Quebecers are more likely than those in any other province (46%) to feel they are so heavily in debt that even lower interest rates would offer little relief.  

“Some are living paycheque to paycheque and finding it difficult to make ends meet and cover basic necessities. Others are struggling with such an overwhelming debt load that their financial challenges simply won’t be manageable, regardless of changes in interest rates,” says Lachance. 

Nearly half (45%, +2 pts) of Quebecers are $200 or less away from failing to meet all their financial obligations. Three in 10 (29%, +1 pt) say they already can’t cover their bills and debt payments. 

“Individuals facing these challenges should consider seeking assistance from a Licensed Insolvency Trustee, who can provide a tailored assessment of their financial circumstances and explore personalized debt relief solutions,” says Lachance. 

Debt perceptions have significantly declined this quarter, following improvements in March. When asked to reflect on their current debt situation compared to one year ago, fewer perceive their current debt situation to be better (26%, -3 pts), while significantly more (19%, +7 pts) rated it as much worse. Quebecers are more likely than those in any other province (44%) to be concerned that they or someone in their household could lose their job, increasing a significant nine points since last quarter. 

“People who are grappling with debt often experience feelings of embarrassment and guilt because of the stigma surrounding this issue. It's crucial to understand that debt is not solely a personal failing, and there are external factors that can contribute to mounting debts, such as job loss and the high costs of servicing debt — especially credit cards. Unforeseen income fluctuations, the increasing prices of daily essentials, rising mortgage payments and rental costs, and unexpected expenses like car or home repairs all contribute to rising debt,” explains Lachance. 

Three in five Quebecers (62%) say they will be in financial trouble if interest rates rise, increasing a significant 11 points since last quarter. Potentially counting on interest rate cuts to improve their financial situation, nearly half intend to save more (49%) if interest rates drop in the next three months, the highest proportion amongst the provinces. A third intend to accelerate their debt repayment (33%) if interest rates drop in that time. However, one in five (19%) believe that declining interest rates won’t affect them in any way. 

“The data is telling us that many households in Quebec will require assistance in managing their debt obligations in the months ahead, regardless of interest rates,” says Lachance. “Licensed Insolvency Trustees are readily available resources for Quebecers, providing customized advice to navigate financial uncertainties with informed strategies.” 

MNP’s national team of Licensed Insolvency Trustees offers free consultations to help severely indebted Quebecers get unbiased debt advice, understand their rights, and determine the best path forward. Licensed Insolvency Trustees are the only federally regulated debt professionals who can assist with all the debt relief options, including Consumer Proposals and Bankruptcy, stop harassment from debt collectors, and discharge people from debt. 

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 twenty-ninth wave, the Index decreased to 85 points, down six points since last quarter. Visit MNPdebt.ca/CDI to learn more. 

The data was compiled by Ipsos on behalf of MNP LTD between June 6 and June 11, 2024. For this survey, a sample of 2,000 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 ±2.5 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.