Albertans expect to face more debt issues in 2026: report

Although many Albertans are starting off their new year with a heavy dose of financial anxiety, one expert says that pessimism might not be warranted.

Albertans are likely to face big financial challenges in 2026, according to a new debt report released Monday.

The MNP Consumer Debt Index, conducted quarterly by Ipsos, suggests three in four Albertans believe life will become more expensive and household budgets will be forced to stretch even further this year.

“For many Albertans, the outlook for 2026 points to continued pressure on daily expenses, as inflation, interest rates and broader economic uncertainty weigh on household finances,” said Lindsay Burchill, licensed insolvency trustee with Alberta-based MNP, in a news release.

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Two in three Albertans also think the economy will slow down and 64 per cent anticipate more pressure from interest rates and inflation in 2026.

About 60 per cent of Albertans also expect transportation and health-care costs to increase.

There is some optimism in the MNP report: more Albertans are adopting cost-saving measures to adapt to the gloomy outlook. Approximately 52 per cent of Albertans have worked to save about six months of emergency funds.

“Even with widespread pessimism about 2026, there are some signs of optimism, with certain households starting the year in a slightly stronger cash-flow position,” said Burchill.

“How Albertans respond to financial stress often hinges on whether they feel they have any flexibility in their budget to work with. For some households, that added room enables them to make budget adjustments and seek support. For others, persistent economic uncertainty continues to reinforce avoidance behaviours.

“Prolonged financial pressure is driving both action and disengagement across Alberta.”

Interest rates are still the top concern among Albertans, even though the Bank of Canada’s last decision held the key rate at 2.25 per cent.

MNP says two-in-three “urgently” want to see interest rates come down while 41 per cent fear an increase would push them toward bankruptcy.

“While Albertans report some improvement in their own financial position, confidence about the year ahead remains unsettled, especially for those carrying higher levels of debt,” said Burchill.

“Ongoing affordability pressures and borrowing costs leave very little margin for error as households head into the new year.”

Burchill added despite all the issues, few Albertans are seeking out professional help for their debt issues, who are usually frozen by the stress and stigma of financial problems.

“Too many Albertans are still trying to deal with financial stress alone,” Burchill said.

“They may not know that there are government-regulated professionals available who can help people gain clarity on their debt-relief options, make informed choices, and prevent financial strain from becoming more severe.”

You can contact MNP online or use its free debt assessment tool on its website for more information.