Rising Cost of Living: What Are the Impacts for Quebecers?

According to a recent analysis published by La Presse, several everyday expenses increased significantly between 2000 and 2025. Among the most notable increases are restaurants (+126%), homeownership (+104%), groceries (+103%), local transportation such as buses, subways, and taxis (+101%), as well as education (+95%). In contrast, very few categories actually decreased, aside from clothing and footwear (-13%) and certain audio and video equipment (-62%).

These figures reflect a very real situation for many households. It’s not just “prices” that are rising—it’s essential expenses that are often difficult to avoid. And when these core costs take up more and more space in the monthly budget, financial flexibility decreases.

For some Quebecers, this results in increased stress, greater reliance on credit, and sometimes a level of debt that becomes difficult to manage.

What is actually becoming more expensive today

Not all price increases have the same impact on a household. A drop in the price of televisions or certain electronic devices may be welcome, but it rarely offsets significant increases in housing, groceries, or transportation.

This is what makes the current period particularly difficult for many families. When essential expenses rise faster than disposable income, the budget becomes tighter—even without any major lifestyle changes. People cut back here, delay a purchase there, and sometimes end up using credit just to maintain balance.

The expenses that weigh the most in real life

Recent data is especially telling because it reflects very concrete, unavoidable expenses:

• housing;

• food;

• transportation;

• education-related costs;

• everyday expenses that cannot easily be reduced.

In other words, financial pressure is no longer driven mainly by discretionary spending. It increasingly comes from basic needs that are harder to eliminate.

Why this increase hits some households harder

Two households can experience the same economic conditions very differently. It depends on their budget structure, existing debt level, disposable income, number of dependents, and ability to absorb unexpected expenses.

A household that already had little financial flexibility before the rise in the cost of living is much more vulnerable. A few hundred dollars more per month for housing, groceries, fuel, school expenses, or minimum payments can be enough to disrupt the balance.

Ages 35 to 49: a group often under pressure

This issue is particularly significant for working-age adults. The 35–49 age group has a median debt level of $62,000, often tied to family life: mortgages, children, childcare, and daily expenses. The average debtor age in this group is 46.

Seniors are also affected

Financial pressure is not limited to families with children. Older individuals can also see their budgets become strained, especially when living on fixed incomes.

In 2025, people aged 65 and over account for nearly 11% of insolvency cases in Quebec. The average debt of retirees typically ranges between $20,000 and $40,000, often in the form of credit cards and high-interest lines of credit.

When rising living costs turn into debt

An increase in prices does not automatically lead to insolvency. The problem begins when the budget is no longer sufficient to cover:

• everyday expenses;

• minimum payments;

• unexpected costs;

• and regular debt repayment.

At that point, credit can shift from being a tool to being a necessity. Groceries are paid with a credit card, a line of credit is used to get through a difficult month, and bills are postponed.

Warning signs to watch for

Some signs indicate that the situation is no longer just a temporary financial squeeze:

You are having increasing difficulty making payments

When payments start being delayed, your budget is already sending a clear warning.

You are using one debt to pay another

Early warning signs include accumulating late payments, receiving calls from creditors, or using one credit card to pay another.

You no longer have room for unexpected expenses

A car repair, school expense, medical cost, or rent increase can be enough to disrupt your entire month.

Financial stress becomes constant

When money is always on your mind, bills become a source of anxiety, and collection calls begin, the situation deserves a proper assessment.

When should you consult a trustee?

Many people wait too long before seeking help. However, acting early often provides more options and allows decisions to be made in a less urgent context.

Advisors at Mallette Syndics et Gestionnaires emphasize that the sooner you act, the more likely it is that you can explore solutions such as debt consolidation or a consumer proposal before the situation worsens.

Consulting a trustee does not automatically mean filing for bankruptcy. The first meeting is primarily about understanding your real situation: your debts, assets, income, expenses, and repayment capacity.