“A steady interest rate doesn’t undo years of financial strain,” states Peta Wales, President & CEO of CCS. “Many young Canadians are already deep in debt. They’re borrowing small amounts just to cover essentials, and over time, those borrowing decisions stack up.”
The report shows that unsecured debt among Canadians under 35 has jumped 9% since last year, now sitting at over $24,000 on average, with more than 40% owing money to finance companies or through BNPL plans, and over a third relying on payday loans. These numbers have steadily increased over the past year.
“We’re seeing people use credit for everything from textbooks to toiletries,” says Mason Cox, Director of Counselling at CCS. “The problem is, this kind of borrowing feels normal – until it isn’t.”
On a positive note, young Canadians are asking for help. CCS reports a 7% increase in under-35 clients since 2023. Most are renters, often in unstable employment, and the highest demand is coming from cities like Edmonton, Vancouver, and Calgary—regions with persistently high housing costs.
“The sheer volume of people in their 20s and 30s we’re hearing from speaks to how much financial pressure they are feeling from their mounting debt,” says Isaiah Chan, Vice President of Programs & Services at CCS. “They’re doing what they can—working, budgeting, cutting back—but it’s not enough to offset today’s cost of living.”
