Growing Debt Stresses among Canadians Under 35
Finance experts and credit counsellors are sounding the alarm: a rising share of debt trouble in Canada is now concentrated among people under 35. In Calgary and across the country, young adults report mounting balances, high monthly payments, and a feeling that their finances are perpetually behind the curve. Mark Kalinowski, a veteran credit counsellor with nearly 14 years of experience, has watched a notable shift this year. “They’ll come in and sometimes they’re carrying two or three debt streams at once—student loans, credit cards, and a burgeoning line of buy now, pay later obligations,” he says. The pattern isn’t isolated to one city; it mirrors a national trend that’s reshaping financial planning for households just starting their financial lives.
Buy Now, Pay Later: A Double-Edged Sword
Buy now, pay later (BNPL) options have become ubiquitous in retail. They promise immediate purchase power with delayed payments, often without interest if payments are made on time. For many young consumers, BNPL feels like a bridge over tight budgets and rising living costs. The trouble, as Kalinowski notes, arises when BNPL purchases cascade into multiple reminders and late fees. “The more BNPL accounts you have, the more you risk a domino effect—missed payments affecting your credit score and compounding interest or penalties,” he explains.
Why BNPL Can Tighten the Grip
BNPL programs frequently operate with soft credit checks and frictionless checkout experiences, which can mask the long-term cost of purchases. For under-35 Canadians already juggling rent, groceries, and student loan payments, BNPL can encourage impulse buying and create an illusion of affordability. Over a period of months, several small payments can total more than the original price, especially when late fees kick in or when promotions end and balances roll into new terms. Financial counsellors say that this pattern often leads to a false sense of control—until debt collectors start calling or a monthly budget reveals a squeeze on essentials.
The Broader Financial Landscape for Young Canadians
Beyond BNPL, the under-35 cohort faces structural pressures: the high cost of housing, student loan debt, and uneven wage growth. A growing number of households are delaying traditional milestones—home purchases, car ownership, and investments—while managing debt obligations. The result is a generation where saving feels aspirational and riskier, and living paycheck-to-paycheck becomes a real possibility. Kalinowski emphasizes the importance of transparency and planning: “When you sit down with a client, the goal isn’t to shame them; it’s to help them see where every dollar goes and to construct a sustainable plan.”
Practical Steps for Rebalancing Debt
Experts suggest several practical moves tailored for under-35 Canadians dealing with BNPL and other obligations:
- Consolidate and track: List all debts, including BNPL plans, with interest rates and due dates. A single dashboard helps prevent missed payments and reveals true monthly obligations.
- Prioritize high-cost debt: Target balances with higher interest and penalties first. While it’s tempting to pay the minimum, reducing expensive debt yields quicker relief.
- Set a realistic budget: Build a lean monthly plan that covers essentials first, then allocates a fixed amount toward debt repayment. Treat BNPL payments as formal obligations, not temptations.
- Cut unnecessary subscriptions: Regularly audit recurring charges. Small, unused services can accumulate into a surprising drain.
- Seek professional guidance: A certified credit counsellor can negotiate with creditors, discuss hardship options, and help rework repayment schedules without wrecking credit.
National Implications and a Path Forward
As BNPL embedding grows in mainstream consumer culture, lenders, policymakers, and financial educators face the challenge of balancing innovation with consumer protection. Clear disclosures, simpler repayment terms, and accessible financial literacy resources can empower young Canadians to use BNPL responsibly rather than as a habitual crutch. The conversation should also extend to employers and educational institutions: integrating budgeting and debt management into financial wellness programs can equip the next generation to plan for housing, retirement, and emergencies.
Looking Ahead
For Canadians under 35, debt stress isn’t an unfortunate byproduct of youth—it’s a signal. A combination of prudent debt management, smarter use of BNPL, and broad-based financial education can help this cohort move toward steadier financial footing. As Mark Kalinowski suggests, change starts with awareness, followed by practical, repeatable steps that turn debt from a weight into a manageable aspect of everyday life.
