Around 58 per cent of B.C. residents recently shared that at least half of their income has already been committed before they get their paycheque.
The data comes from the latest MNP Consumer Debt Index, which released a quarterly report that Ipsos conducted.
It pointed to the fact that many B.C. residents are caught in what it coined a “pre-spent paycheque cycle.” Upon entering each pay period, for these folks, most of their income has already been dedicated to certain expenses.
“For many British Columbians, paycheque-to-paycheque no longer fully captures the pressure they are under,” said Linda Paul, a licensed insolvency trustee with MNP LTD in the Lower Mainland, in a statement.
“The paycheque may not have arrived yet, but a large part of it is already needed for bills, debt payments and regular expenses. That can keep households current for a time, but it can also create a rolling shortfall, where each pay period is spent catching up from the last one. It leaves little room for anything unexpected, so even small additional costs can deepen the gap before the next paycheque arrives,” Paul said.
Where’s that money going?
For 58 per cent of B.C. residents, the answer is debt payments, bills, and regular expenses. An additional one-third or 32 per cent of B.C. residents say most of their paycheque is already spoken for.
Slightly less than half of B.C. respondents (43 per cent) said they’re struggling to get ahead, and British Columbia leads the entire country in this reality.
Two-in-five B.C. residents are cutting back on “family and personal enrichment expenses.” Things like personal care, clothing, and kids’ activities.
The situation is particularly alarming for around 43 per cent of respondents who say they are $200 or less away from not being able to pay their bills and debt every month. That’s up six points since last quarter, according to MNP.
A total of 22 per cent of respondents said they don’t earn enough to cover bills and debt payments.
Additionally, 61 per cent of residents are cutting back on travel and experiences “due to financial pressures.” Many are cutting back on vacation plans, and almost half of respondents are cutting back on concerts, festivals, sports, movies, and other events.
Like other reports of this nature, MNP also found that over half of respondents are cutting back on dining and socializing, including cutting back on restaurants, patios, take-out, or coffee shops.
“In B.C., these cutbacks are showing up in the activities and experiences that help people stay connected, from travel and events to family plans and social gatherings,” said Paul. “When those choices keep narrowing, financial pressure becomes more than a line item in the household budget. It can affect people’s sense of connection and quality of life.”
MNP says that interest rate concerns are persisting, with budgets remaining stretched.
“Stable interest rates can make the outlook feel steadier, but they do not necessarily ease the ongoing pressure of debt-servicing costs,” says Paul.
“For British Columbians already stretched thin, even holding rates steady means continuing to manage elevated monthly payments, leaving little room to absorb higher costs or unexpected expenses without cutting back further or relying more heavily on credit, especially amid broader economic uncertainty.”
Another report we recently shared found that the average grocery basket in B.C. went up from $43.23 in May 2025 to $44.92 in May 2026.