More than half of self-employed Canadians used credit for daily expenses, survey finds

A new Money Mentors report says 53% of surveyed Canadians with self-employment, gig or side-hustle income used credit to pay for groceries, bills or other everyday costs in the past year. The findings point to widespread cash-flow pressure, limited savings and skipped financial goals as Financial Literacy Month begins.

Why it matters: - More than half of surveyed Canadians earning self-employment or gig income relied on credit to cover basic expenses, showing that uneven cash flow is forcing day-to-day borrowing. - The report suggests income instability is pushing people to delay savings, miss bills and skip time off, which can deepen longer-term financial stress. - Women in the survey reported higher rates of income shortfalls than men, pointing to uneven pressure across self-employed workers.

What happened: - Money Mentors released its 2026 Self-Employment Report in partnership with Angus Reid as Financial Literacy Month began. - The survey found 53% of Canadians who reported self-employment, gig work, side hustles or other paid work used a credit card or line of credit in the past year to cover groceries, bills or other everyday expenses because income was lower or less predictable than needed. - The survey also found 51% experienced an income shortfall at least once in the past year. - Nearly one in four, or 23%, fell short of what they needed to cover regular living expenses most months or every month.

The details: - More than half, 54%, reduced or stopped putting money into savings. - Nearly half, 47%, cut back on groceries or other household essentials. - Forty-five percent used savings or emergency funds to cover regular living expenses. - About one in four, 23%, delayed or missed a bill payment. - Twenty-two percent borrowed money from family or friends. - Eighteen percent did not set aside enough money to cover the income tax or GST/HST they owed. - Three in five women, or 60%, experienced an income shortfall at least once in the past year, compared with 43% of men. - Nearly half, 46%, said their savings would cover no more than two months of regular expenses if all income stopped today. - Thirteen percent said they have no savings at all. - More than two in five, 41%, delayed, stopped or reduced investing contributions. - Thirty-seven percent did the same for retirement savings. - Thirty-six percent did the same for emergency fund contributions. - Nearly half, 48%, said they felt anxious or overwhelmed about their self-employment income or finances. - Twenty-eight percent reported losing sleep. - One in five, 20%, avoided taking time off, including sick days or vacation, because they could not afford the lost income. - Money Mentors said the F.R.E.S.H. program gives Alberta entrepreneurs and small business owners free one-on-one financial guidance to better understand options and manage financial challenges. - Money Mentors also offers free, confidential credit counselling and serves as Alberta's exclusive provider of the Orderly Payment of Debts program. - More information is available at the company's website.

Between the lines: - The report frames the problem as more than budgeting discipline, with income volatility and fixed expenses creating a structural squeeze. - The data suggests many self-employed Canadians are trading off near-term stability against long-term financial goals such as investing and retirement. - The findings also point to a hidden cost of self-employment: people may keep working while sick or exhausted because they cannot afford downtime.

What's next: - Money Mentors is urging Canadians with self-employment income to plan for fluctuating earnings, set aside money for taxes and build emergency savings. - The organization is steering Alberta entrepreneurs toward F.R.E.S.H. for financial check-ins, guidance on options and referrals to other resources. - The report may add pressure for more tailored support for workers with irregular income, especially as costs remain fixed and unpredictable paydays continue.