Debt stress rises among Canadians under 35
Credit counsellors like Mark Kalinowski are seeing a shift in who seeks help. For nearly 14 years, Kalinowski has helped Canadians navigate debt therapy, budgeting, and repayment plans. Yet this year, a growing share of his Calgary clients were under 35. The trend isn’t isolated to one city; financial counsellors across the country are reporting the same younger cohort presenting with heavy debt and tight budgets.
Among these clients, common threads include limited savings, rising living costs, and a desire to maintain an active lifestyle while juggling student loans, rent, and everyday expenses. When a quarter of a counsellor’s clientele is aged 34 or younger, it signals a broader national pressure point: the combination of higher borrowing, persistent price growth, and financial products that encourage quicker consumption can amplify stress for households with smaller cushions.
Why this generation is feeling the pinch
There are several factors at play. First, student debt remains a substantial hurdle for many young Canadians, even as some repayment terms evolve. Second, the cost of housing and education has outpaced wage growth in many markets, narrowing the window between earning and expenditure. Third, the expansion of consumer credit options—especially Buy Now, Pay Later (BNPL) services—has changed how people spend, often blurring the line between necessary purchases and discretionary buys.
BNPL platforms promise instant gratification and simple budgeting by splitting purchases into smaller installments. But the reality for many under 35 is a cycle of recurring payments that can outpace the budget, particularly when users aren’t tracking due dates across multiple merchants. When a primary income is moderate and expenses are rising, small missed payments can snowball into late fees, interest, and a damaged credit score.
The BNPL dilemma for young Canadians
BNPL usage has grown rapidly in Canada, with widespread storefront and online availability. For some shoppers, BNPL helps manage cash flow during tight months or when a necessary big-ticket item is unavoidable. For others, it becomes a slippery slope toward overextension. Counselors report cases where a young borrower has several BNPL obligations in addition to credit cards and personal loans, complicating repayment priority and increasing financial anxiety.
From a mental health perspective, debt stress can impact sleep, concentration, and overall well-being. The sense of never catching up can erode financial confidence and affect long-term goals like home ownership or retirement planning. These are not merely numbers on a statement; they shape daily decisions, such as delaying medical care, skipping preventive services, or avoiding conversations with partners about money.
Practical steps to regain control
Experts emphasize practical, actionable steps to reduce debt stress and protect credit health. A few effective approaches include:
- Consolidate and document all debts: list each obligation, minimum payments, and due dates to see the full picture.
- Prioritize essential expenses: housing, utilities, food, and transportation should come first, with discretionary spending trimmed where possible.
- Set a realistic repayment plan: balance aggressive targets with sustainable payments that fit current income.
- Limit new credit and BNPL use: pause new commitments until existing balances are addressed and a stable cash flow is established.
- Seek professional guidance: a certified credit counsellor or financial advisor can help tailor a plan, negotiate with creditors, and explore debt relief options when appropriate.
For young Canadians, building an emergency fund—even a small one—can act as a buffer against sudden costs and reduce future reliance on credit. It’s also valuable to review all sources of income, expenses, and potential government programs or employer benefits that can offset costs or accelerate debt repayment.
Looking ahead
The conversation around debt for under-35 Canadians is evolving. While BNPL and other modern payment options offer convenience, they also require disciplined budgeting and clear financial boundaries. As more young people seek assistance, communities, lenders, and policymakers are urged to promote transparent terms, responsible lending, and accessible financial education that helps a growing generation navigate debt with confidence.
