MONTREAL – For many Quebecers, the credit card is no longer a convenience, but a financial lifeline. As the cost of living continues to climb – particularly grocery prices and rent – more and more households are relying on credit to cover essential expenses, pushing personal debt to record levels. The situation is prompting concern among insolvency trustees and raising questions about the long-term financial health of families across the province.
The average Canadian debt, excluding mortgages, reached $67,500 in 2025, the highest figure since 2011, according to a study by Hoyes Michalos insolvency experts. This increase reflects a broader trend of financial anxiety among consumers grappling with economic pressures. The rising cost of basic necessities is forcing difficult choices, and for a growing number of Quebecers, those choices involve putting groceries on a credit card.
“Today, you can earn a quality living but still be unable to absorb an unexpected expense,” explained Guillaume Amiot, an insolvency trustee at Raymond Chabot insolvency firm. “And many are using credit cards as a survival tool, not to buy luxuries.” The reliance on credit is so pervasive that some shoppers report needing to use multiple cards simply to afford their weekly groceries, as reported by Noovo Info.
Rising Insolvencies Reflect Economic Strain
The increasing financial strain is translating into a rise in insolvencies and bankruptcies across Canada. Raymond Chabot has observed a significant uptick in the number of individuals seeking help with debt management. In Quebec alone, nearly 35,000 insolvency files were opened in 2025, including 10,000 bankruptcies. This surge underscores the widespread impact of inflation and economic uncertainty on household finances.
The situation isn’t limited to those with low incomes. Even middle-class families are finding themselves stretched thin, struggling to keep up with rising costs. The pressure is particularly acute in Quebec, where housing costs have been steadily increasing in recent years. A recent report highlighted that Quebecers anticipated a further 10% increase in grocery prices in 2025 according to the Journal de Montreal, adding to the financial burden on households.
The Cycle of Debt and the Path to Recovery
While bankruptcy carries a significant emotional toll, Amiot emphasizes that it’s not a dead finish. He encourages individuals facing overwhelming debt to seek professional help sooner rather than later. “Financial institutions are often willing to work with people who have stable employment to restructure their debt and rebuild their credit,” he said.
However, the impact of debt extends beyond financial hardship. Ergotherapist Katerine Riva points to the considerable impact debt has on the quality of life for Quebecers. The constant stress and worry associated with financial insecurity can take a toll on mental and physical health, affecting relationships, work performance, and overall well-being.
The increasing reliance on credit cards as a coping mechanism raises concerns about a potential debt spiral. High interest rates on credit cards can quickly exacerbate debt problems, making it even more difficult for individuals to regain financial control. Experts recommend exploring alternative options, such as budgeting, debt consolidation, and credit counseling, before resorting to credit as a long-term solution.
Looking Ahead: Addressing the Root Causes
The current situation highlights the necessitate for broader economic policies to address the root causes of rising debt levels. This includes measures to control inflation, increase affordable housing options, and provide financial literacy education to help individuals make informed decisions about their finances. The government of Quebec has been engaged in discussions about these issues, as evidenced by a recent exchange between Premier Legault and Ghazal regarding public sector salaries and their impact on the cost of living as reported by Le Journal de Québec.
The situation remains fluid, and ongoing monitoring of economic indicators and insolvency rates will be crucial. The next key data release is expected in early March 2026, when Statistics Canada will publish updated figures on household debt levels. For those struggling with debt, resources are available. Contacting a licensed insolvency trustee is a crucial first step towards regaining financial stability.
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