Three survey findings that stand out

54% reported a negative impact at work. Respondents said tariffs and U.S. trade disruption had negatively affected their employer or business.

37% reported lower household employment income. Respondents linked that decline to tariffs or trade-related business disruption.

42% reported more household debt. They said their debt had increased since tariffs and trade disruption began affecting their industry.

The findings suggest that missed payments are only one measure of financial pressure. Respondents also reported using more credit and cutting back on necessities, while many said they were still meeting payments but struggling.

How can U.S. tariffs affect Canadian household finances?

U.S. tariffs on Canadian exports can reduce demand for affected products and put pressure on the businesses that sell them. For workers, this may mean fewer hours, lost shifts or less certainty about their jobs. 

Tariffs on imported goods can also raise some prices. The Bank of Canada explains how these effects can reach businesses and consumers.

Our survey respondents described several of these employment pressures, including reduced hours, lost overtime or shifts, frozen pay and job losses. When a paycheque shrinks, housing costs, utility bills, and existing debt payments may not shrink with it. 

A household can be keeping up with every payment and still have very little room left for an unexpected expense.

“Tariffs may begin as a business issue, but when they affect hours, employment or income, the impact can quickly become a household debt issue. Families often turn first to savings and credit before they begin missing payments.”

— Gillian Goldblatt, Licensed Insolvency Trustee and Partner, msi Spergel Inc.

When borrowing fills the gap

A credit card can help cover a shortfall in the moment, but it can also leave a balance to repay when income is already under pressure. 

In our survey, 38% said they had relied more heavily on credit cards to help with household expenses. Nearly three in ten were making only minimum payments, while others reported using savings or carrying balances they would normally have paid off.

These responses point to a form of financial strain that may not yet show up as a missed payment. Someone can be paying the bills while using up the savings or credit they might need for the next unexpected expense.

None of these decisions alone means a household is insolvent. The concern is when borrowing becomes a regular way to pay for essentials, while the amount owed continues to grow. That’s the point at which a temporary income problem can become harder to resolve.

The financial squeeze is reaching everyday essentials

41% of our respondents said they had reduced spending on groceries or other necessities. Others reported delaying bills or reducing contributions to savings. When cuts reach necessities, there may be less room to adjust the budget without affecting daily life.

By the time someone misses a payment, they may have been making difficult trade-offs for months. 

In the survey, 63% said they were struggling while still making payments, were already behind, or expected they might fall behind within three months. Most of this group were still making their required payments, though they said it was a struggle. When respondents who said they were keeping up but had little room to spare are included, 84% were financially stretched.

Looking ahead, respondents also said they might make significant spending cuts or major housing and lifestyle changes if conditions continued for another six months. These were possibilities they anticipated, not predictions of what they will do, but they show how respondents are thinking about a prolonged squeeze.

When does financial pressure become a debt problem?

A period of reduced income doesn’t automatically mean debt is unmanageable. Warning signs include regularly using credit to buy groceries, paying only the minimum on debts, delaying one bill to pay another, or finding that balances rise despite efforts to cut spending.

If your work or income has changed, start with a clear picture of what is coming in, what must be paid, and when. Contact lenders or service providers early if you expect to miss a payment and ask what arrangements may be available. It can also help to talk through the full situation with a qualified professional rather than choosing a debt solution based on one bill.

A Licensed Insolvency Trustee can review your income, expenses, assets, and debts, then explain the options that fit your circumstances. These may include budgeting, credit counselling, debt consolidation, a consumer proposal or bankruptcy. Speaking with a trustee doesn’t commit you to filing a proposal or bankruptcy.

Frequently Asked Questions

How can U.S. tariffs affect a household budget in Canada?

Tariffs and trade disruption can put pressure on businesses that sell to or buy from the United States. If that affects working hours or income, a household may have less money for regular expenses and debt payments. Tariffs on imported goods can also raise some prices. The effect will differ by employer and household.

Can tariffs cause household debt to increase?

They can contribute to financial pressure if income falls or costs rise and a household borrows to cover the gap. In our survey, respondents reported both income disruption and rising debt, but the results can’t establish that tariffs caused any individual household’s debt increase.

What should I do if reduced hours make debt payments difficult?

Review your essential expenses and upcoming payments, then contact lenders early if you expect to miss a payment. A Licensed Insolvency Trustee can assess your full financial situation and explain suitable options, including informal approaches and formal debt solutions where appropriate.

Do I need to miss a payment before speaking with a Licensed Insolvency Trustee?

No. You can ask for advice while you’re still keeping up, especially if you regularly use credit for essentials or make only minimum debt payments. A conversation with a trustee doesn’t require you to file for bankruptcy or make a consumer proposal.

Survey methodology

Spergel’s 2026 Tariffs, Jobs and Household Debt Survey received 281 responses between September 22 and 25, 2026. It asked respondents in Canada about tariffs and U.S. trade disruption, employment, household income, borrowing, debt, and their ability to meet financial obligations.

The results describe the people who responded and are not a nationally representative estimate of all Canadian households. The survey relies on reported experiences and cannot establish that tariffs caused any individual household’s debt. 

For related findings, read Spergel’s Cost of Getting By in Canada survey and The Emotional Toll of Debt.

Concerned about your debt?

You don’t have to wait until you miss a payment to understand your options. If reduced income or growing balances are making it difficult to keep up, book a free, confidential consultation with Spergel to discuss your situation with a Licensed Insolvency Trustee.

Nearly half of respondents to Spergel’s 2026 Cost of Getting By Survey said they are carrying more debt than they were 12 months ago because of everyday living expenses.

Among the 325 people surveyed, 50% have also delayed paying a bill because they needed the money for groceries or other necessities. Meanwhile, 48% said their household at least occasionally struggles to cover all its regular monthly expenses.

The findings reveal how everyday costs are affecting household debt, savings, food choices, and financial wellbeing.

Key findings from the 2026 Cost of Getting By survey

Our research identified three clear areas of financial pressure:

• Everyday expenses are contributing to debt: 50% of respondents are carrying more debt because of ordinary living costs.
• Grocery costs are forcing difficult choices: 76% said groceries have become harder to afford and 52% have worried about running out of food.
• Many households have limited financial resilience: 51% would need to borrow, finance or be unable to cover an unexpected $500 expense.

The survey is descriptive of its respondents and is not presented as a probability estimate for the Canadian population. Full methodology information is included below.

What is making it harder for Canadians to get by?

Groceries were the most commonly reported source of financial pressure, with 76% of respondents saying they had become harder to afford over the past year.

When respondents could select all the expenses that had become harder to afford, transportation ranked second (46%), followed by rent or mortgage payments (38%) and utilities (37%).

In a separate question, respondents were asked to choose only the one expense placing the greatest pressure on their household budget. Groceries again ranked first at 38%, while rent or mortgage payments ranked second at 22%.

The results show that the pressure is not confined to one part of the household budget. Transportation, housing, utilities, and existing debt payments are all becoming harder for a significant proportion of respondents to manage.

For a breakdown of typical expenses across the country, read our guide to the average cost of living in Canada.

How are grocery prices affecting Canadian households?

A combined 76% of respondents said groceries were somewhat or much more difficult to afford than they had been 12 months earlier.

Most commonly, respondents switched to lower-cost brands or bought more items only when they were on sale. Others changed where they shopped, purchased discounted food or reduced the amount of meat, fresh fruit, and vegetables they bought.

For some respondents, the changes were more serious. Almost one in five reported skipping meals, while 17% had reduced portion sizes.

Overall, 70% said grocery prices had sometimes or frequently caused them to compromise the nutritional quality or variety of their food. Exactly 52% had often or sometimes worried about running out of food before they had enough money to buy more.

Spergel’s earlier 2026 grocery research also found that households were delaying bills, changing their food choices, and borrowing to afford groceries. Although the two surveys used different samples and questions and should not be treated as a continuous tracking study, both identify food affordability as a persistent source of household pressure.

Is the cost of getting by causing people to take on more debt?

According to Spergel’s 2026 Cost of Getting By Survey, 50% said they were carrying more debt because of everyday living expenses than they had been 12 months earlier. This included 21% carrying significantly more debt and 29% carrying somewhat more.

Using credit does not necessarily mean someone has an unmanageable debt problem. Regularly borrowing to pay for groceries, utilities or other necessities, however, can create a difficult cycle of debt.

When today’s expenses are paid using future income, less money is available for next month’s bills. Interest and minimum payments can then add further pressure to an already stretched budget.

“The issue isn’t simply that households are spending too much,” says Gillian Goldblatt, Partner and Licensed Insolvency Trustee at Spergel. “When ordinary necessities consistently cost more than household income can absorb, people begin using credit and savings to close the gap. That can work temporarily, but it isn’t sustainable indefinitely.”

Are households using savings to cover living expenses?

Everyday costs are also affecting respondents’ ability to build and maintain savings.

A total of 45% have reduced or stopped contributions to general savings, while 34% have cut their emergency savings contributions. Another 31% have used savings to cover regular household expenses.

Using savings can prevent an immediate missed payment, but it may leave a household more exposed when an unexpected cost arises.

Only 14% of respondents said they could pay an unexpected $500 expense from their regular income without difficulty. A further 18% would use savings.

In contrast, 51% would need to finance the expense, borrow money or be unable to pay it. This included using a credit card carried over time, a line of credit or overdraft, short-term borrowing, or help from family and friends. More than one in five said they simply could not cover the cost.

Having to borrow for one unexpected expense does not automatically indicate insolvency. It can, however, be a warning that there is very little flexibility left in the household budget.

“The most concerning finding isn’t simply that everyday expenses cost more, it’s what people are being forced to do to keep up,” said Gillian Goldblatt, Partner and Licensed Insolvency Trustee at Spergel. “When households are taking on more debt, drawing down savings or delaying one bill so they can pay for groceries and other necessities, an affordability problem can very quickly become a debt  problem.”

How is financial pressure affecting mental health?

The cost of getting by is not only affecting respondents’ bank balances.

More than half said financial pressure had negatively affected their mental health or mood, while 52% said it had affected their sleep. Respondents also reported effects on their social lives, physical health, and relationships with partners and family members.

These findings reflect a connection we explored in our 2025 Debt Load and the Impact to Psychological Wellbeing study. The research we carried out examined how debt can contribute to anxiety, depression, sleep issues, isolation, and relationship strain, as well as the stigma that can prevent people from seeking help.

Money worries can be difficult to separate from other areas of life. Concern about bills may interfere with sleep, while cutting back on social activities can increase isolation. Financial pressure can also create tension between partners and family members.

Seeking advice early can provide a clearer understanding of the available financial options and help people feel less alone. Download our report for further research, practical guidance, and mental health support resources.

When does the cost of getting by become a debt problem?

Some common warning signs include:

• Regularly using credit to buy groceries or necessities
• Carrying credit card balances from one month to the next
• Using savings to pay ordinary household expenses
• Delaying one bill to pay another
• Using one form of debt to repay another
• Being unable to rebuild emergency savings
• Experiencing persistent stress or losing sleep because of money

You do not need to wait until you have stopped making payments before asking for help.

The right approach will depend on your income, expenses, assets, and the types of debt you owe. Possible options may include budgeting or credit counselling, debt consolidation, a consumer proposal or bankruptcy.

A Licensed Insolvency Trustee can review your financial situation and explain the costs and consequences of each option. Speaking to a trustee does not commit you to a formal debt solution.

Book a free consultation with Spergel to understand which options may be available to you.

Frequently Asked Questions

What is making it harder for respondents to get by?

Groceries were the most frequently reported pressure. A total of 76% said groceries had become harder to afford, while 38% identified them as the single greatest pressure on their household budget.

How many respondents are taking on more debt because of everyday expenses?

A total of 50% said they were carrying somewhat or significantly more debt than they had been 12 months earlier because of everyday living expenses.

Could most respondents cover an unexpected $500 expense?

Only 32% could cover the expense directly through regular income or savings. A combined 51% would need to finance it, borrow money or be unable to pay.

When should someone seek help with debt?

Consider seeking advice if you regularly rely on credit for necessities, delay bills, make only minimum payments, use one form of debt to repay another or cannot see a realistic way to repay what you owe.

Survey methodology

Our 2026 Cost of Getting By Survey included 325 respondents across Canada’s 10 provinces.

Current and former Spergel clients were excluded. Respondents were recruited through a paid research panel.

The survey is descriptive of the people who participated and is not presented as a probability estimate of the Canadian population. Percentages in this article refer to survey respondents unless otherwise stated.

What to read next

Living paycheque to paycheque: how to break the cycle

Are you living within your means?

How to reduce your current bills: tips to save money

Debt Load and the Impact to Psychological Wellbeing