More than half of gig workers and freelancers used debt to cover basic expenses in 2026, a new survey finds
A new survey is casting a sharp light on the financial fragility facing Canada's growing self-employed workforce, with more than half turning to credit cards or lines of credit simply to pay for groceries and everyday bills.
Money Mentors, an Alberta-based non-profit credit counselling agency, released its 2026 Self-Employment Report on November 3, 2026, conducted in partnership with Angus Reid.
The survey of 1,501 Canadian adults found that 53 per cent of those earning income through self-employment, gig work, side hustles or other paid work used credit to cover regular living expenses in the past year because their income was lower or less predictable than needed.
The findings land at the start of Financial Literacy Month and underscore a challenge that financial advisors working with self-employed clients know well: variable income makes even basic cash flow management a moving target.
Income shortfalls are the rule, not the exception
More than half of respondents (51 per cent) said they experienced an income shortfall at least once in the past year. Nearly one in four, or 23 per cent, fell short of what they needed to cover regular living expenses most months or every month.
The downstream effects are significant. In the past 12 months, 54 per cent of respondents reduced or stopped contributing to savings altogether, while 47 per cent cut back on groceries or other household essentials.
Another 45 per cent dipped into savings or emergency funds to cover regular expenses - a pattern that advisors familiar with debt stress among Canadians will recognise as a warning sign for long-term financial health.
About one in four delayed or missed a bill payment entirely, while 22 per cent borrowed money from family or friends. Eighteen per cent did not set aside enough to cover income tax or GST/HST obligations - a particularly acute risk for self-employed individuals who lack employer withholding.
Women bearing a disproportionate burden
The survey also found a meaningful gender gap. Three in five women (60 per cent) experienced an income shortfall at least once in the past year, compared to 43 per cent of men. The disparity points to structural vulnerabilities in how self-employment income is distributed.
"When more than half of surveyed Canadians earning self-employment income have used credit to cover everyday expenses, it's clear this goes beyond budgeting," said Stacy Yanchuk Oleksy, CEO of Money Mentors. "Financial literacy is important, but it can only go so far when income is unpredictable and bills keep coming. People need support before cash flow challenges turn into bigger financial problems."
Retirement savings and long-term planning at risk
Beyond the immediate squeeze, the survey points to a compounding effect on long-term financial security. Nearly half of respondents (46 per cent) said they could cover no more than two months of regular expenses using savings if their income stopped entirely, including 13 per cent who have no savings at all.
More than two in five, or 41 per cent, have delayed, stopped or reduced contributions toward investing. Thirty-seven per cent have done the same for retirement savings, and 36 per cent for building an emergency fund - findings that echo broader concerns about financial stress hitting record levels across Canada and the hollowing out of financial buffers.
Nearly half of respondents (48 per cent) reported feeling anxious or overwhelmed about their finances, while 28 per cent said financial worry was affecting their sleep. One in five avoided taking time off, including sick days and vacation, because they could not afford to lose the income.
What this means for advisors
For financial advisors and planners working with self-employed clients, the survey reinforces the importance of building income-smoothing strategies into financial plans - whether through dedicated cash flow reserves, staggered tax instalments or structured emergency funds. As cost-of-living pressures continue to push Canadians toward credit, the self-employed segment represents both a growing client opportunity and a group that may arrive with more financial complexity than their income statements suggest.
Money Mentors' F.R.E.S.H. program - Financial Reset Program for Entrepreneurs & Small Business Owners - provides free, one-on-one financial guidance to Alberta entrepreneurs and small business owners. The organisation also serves as Alberta's exclusive provider of the Orderly Payment of Debts program.
The 2026 Self-Employment Survey was conducted by Angus Reid from October 7 to 9, 2026, with 1,501 Canadian adults. Results related to self-employment are drawn from a subset of respondents who reported earning income through self-employment, gig work, side hustles or other paid work.
