Tariff pressure is pushing more households into debt, Spergel survey finds

A new msi Spergel survey of 281 Canadians says tariffs and U.S. trade disruption are now weighing on household budgets, with 4 in 10 respondents reporting higher debt and 63% saying they are struggling to keep up or fear falling behind. The findings show employers, paycheques and day-to-day expenses are all being hit at once.

Why it matters: - Tariff pressure is moving from the business side of the economy into household finances. - The survey suggests more families are relying on credit, savings and spending cuts to cover basic expenses. - The findings point to rising debt stress even for households that are still making payments.

What happened: - msi Spergel released its Spergel Insights: Tariffs, Jobs and Household Debt Survey in September 2026. - The survey collected 281 responses from people asked about tariffs, trade disruption, employment, income, borrowing and debt. - 54% said tariffs and U.S. trade disruption have hurt their employer or business. - 22% described that business impact as significant. - 40% said their household debt has increased. - 37% reported lower household employment income. - Nearly 30% said their income had fallen by more than 10%.

The details: - 41% said they reduced spending on groceries or other necessities because of reduced income or financial pressure. - 38% said they used or increased credit card use to manage household expenses. - 31% used savings to cover regular expenses. - 29% made only minimum debt payments. - 25% carried a credit card balance they would normally have paid off. - 22% missed a bill or debt payment. - 63% said they are struggling to keep up, already behind on payments or seriously concerned they will fall behind within the next three months. - When households with little room to spare are included, 84% can be described as financially stretched. - 37% said they may need to significantly reduce household spending over the next six months. - 25% pointed to major housing or lifestyle changes. - 19% said they may need to use more savings. - 14% said they may need to take on additional debt. - Some respondents also pointed to financial counselling, refinancing and formal insolvency options, including speaking with a Licensed Insolvency Trustee. - The study allowed some respondents to select more than one answer on certain questions, so some totals exceed 100%.

Between the lines: - The survey shows a typical squeeze pattern: lower income comes first, then savings get tapped, then credit use rises, then bills start slipping. - That sequence suggests tariffs can become a consumer debt issue quickly when hours are cut, overtime disappears or jobs are lost. - The results also suggest many households are already close to the edge even if they have not missed payments yet. - Gillian Goldblatt, Licensed Insolvency Trustee at msi Spergel and past-president of the Ontario Association of Insolvency and Restructuring Professionals, said households often reach for savings and credit before recognizing how serious the debt problem has become.

What's next: - msi Spergel says households facing rising debt should seek advice before missing multiple payments or draining savings. - The firm says people should consider help as soon as expenses are increasingly funded with credit or debt keeps rising despite making payments. - The survey’s results suggest continued trade and employment pressure could drive more households toward spending cuts, refinancing or formal debt solutions.

The bottom line: - Tariffs are no longer just a trade issue for employers; the survey says they are now showing up in grocery bills, credit card balances and missed payments at the household level.