New index shows affordability, debt and burnout converged into a nationwide crisis this year
A new national survey suggests 2025 marked a turning point for Canadian household finances, with debt pressure, affordability challenges and emotional strain converging into what researchers describe as a crisis of resilience.
Harris & Partners has released its first Financial Resilience Index, drawing on more than 12,000 survey responses collected throughout the year. The findings point to widespread financial exhaustion, as rising living costs consistently outpaced income growth and forced Canadians to rely on credit for basic needs.
“This year’s data doesn’t just show stress; it shows a nation hitting its limit,” said Joshua Harris, CEO and Licensed Insolvency Trustee at Harris & Partners. “When you look across all twelve surveys, the message is unmistakable: Canadians are exhausted, financially overextended, and increasingly unsure how to stay afloat.”
By mid-year, 57.3% of respondents said their income failed to cover essentials such as housing, food and utilities. By the fall, nearly nine in 10 reported living paycheque to paycheque, while more than 80% said they were cutting back on necessities, including groceries and heating.
More than half of Canadians surveyed said they had borrowed in the past two years to pay for essentials, and 77.1% said they could not manage a $500 emergency without credit. Payday loan use emerged as a key warning sign, with most borrowers using them for basic expenses and many struggling with repayment.
“This is where the crisis becomes visible,” Harris said. “Nobody chooses a payday loan to improve their lifestyle. They choose it because their fridge is empty or their rent is due. These are survival decisions.”
The financial pressure carried a significant emotional toll. A majority of respondents reported anxiety, lost sleep and worry tied directly to debt, while more than half said they concealed their financial struggles from loved ones. Workplace stress compounded the problem, with many Canadians reporting increased workloads, unpaid overtime and burnout without corresponding pay increases.
Younger Canadians were particularly affected. High student debt, rising rents and stagnant entry-level wages led many to delay major life milestones, while recent legal changes further complicated debt relief options for those returning to school.
The survey’s findings align with official data showing consumer insolvencies reached their highest level since 2009 in the third quarter. Despite the strain, nearly two-thirds of Canadians said they believe their financial situation could improve in the coming year.
“Canadians are strong, capable, and determined,” Harris said. “But resilience shouldn’t be a replacement for a functioning financial environment.”
