2025 Survey Results
Consumer Debt Report 2025
Having weathered the financial storm emerging from the pandemic, to many it would seem as though last year was the first good year with inflation and interest rates subsiding. However, our annual survey of 1,200 Canadians reveals that things are not all as they seem. Many Canadians are still struggling financially and large numbers are falling behind as they try to keep up with higher costs of living.
This survey attempts to try and gain a deeper understanding of what Canadians are going through and the challenging realities they are facing. This survey provides important insights into the debt, perceptions, and feelings of people across Canada.
Insights
- Canadians are Falling Further Behind: While the most significant financial challenges to Canadians would seem to have passed, a considerable number are still having a difficult time coping financially with increased costs of living and continue to fall behind.
- Close to 30% claim their financial situation is worse now compared to the same time last year.
- Over the past year, 36% have seen their debt increase.
- Increased Reliance on Credit and Savings: While the pandemic is behind us, Canadians continue to rely on financial supports to pay their bills. 64% claim to have recently relied on credit or dipped into their savings or investments to manage expenses.
- Emotions are Rising Along with Debt Levels: Canadians are increasingly becoming frustrated with their increasing debt. For those who have seen their debt increase, at least 80% claim to be worried or anxious about it. 77% feel frustrated, and 45% feel hopeless.
When asked to rank their top fears, Canadians who had an increase in debt last year ranked “talking about debt” as their second greatest fear next to “swimming with sharks.”
Canadians Don’t Like Talking About Their Debt
They also revealed that while they spend a lot of time thinking about their personal finances, it’s the topic they are the least comfortable talking about.
State of Personal Finances
Amid the economic uncertainty that has begun with 2025, Canadians are just as likely to feel worse off now than better. While levels of confidence and anxiety about personal finances are similar to one year ago, the specific circumstances for Canadians have notably changed:
- Canadians struggle more now because of economic uncertainty, similar to 2020/2021 when the pandemic was unfolding, than in recent years where it had more to do with increased costs associated with rising interest rates and inflation.
- While spending more on essentials remains a top concern for Canadians, a resurgence in job instability over the past 12 months has become an even bigger reason for Canadians’ worsening financial situation, with one in three ranking it as a top contributing factor.
- 34% feel anxious about current financial situation
. 34% - 28% feel worse about their financial position today vs. the beginning of 2024. 28%
- 77% of Canadians with a worsened financial situation say spending more on essentials is the top contributor. 77%
- 34% listed the recent change in the US government as one of their top financial concerns. 34%
Debt and Savings
Canadians have been increasingly likely to have turned to sources of financial support over the last year. Half of those with increased debt have recently drawn from savings or investments, used credit instead of cash for purchases, and reduced the amount they are contributing to their savings and investments.
More than a third of Canadians have seen an increase in total debt over the last year, and while almost half of those carrying debt have taken proactive measures to manage this, there are still many who are falling further into debt with one-in-four only dealing with their debt either once it had reached a critical stage or haven’t done anything about it yet.
- 64% of Canadians have had to recently lean on credit or savings to get by. 64%
- 77% of those who saw their debt increase in the past year feel frustrated and 45% feel hopeless. 77%
- 67% of those whose non-mortgage debt increased are not paying much more than the minimum payments
. 67% - 36% of Canadians have experienced an increase in debt in the past year. 36%
The Debt Effect
Debt is negatively affecting many elements of Canadians’ lives.
- 31% say it affects their mental wellbeing (54% if increase in debt in the past year).
- 30% say it affects their outlook on life (60% if anxious about their financial situation or uncomfortable with the amount of debt they are carrying).
- 25% (1 in 4) of those experiencing an increase in debt say it affects their relationship with their partner.
Perceptions of Financial Assistance
Canadians who need financial help and guidance the most are least likely to reach out to resolve their situation held back by both fear and negative associations with needing help. Canadians continue to have predominantly negative associations with reaching out for financial help themselves.
Canadians with increased debt this past year fear talking about their debt second only to swimming with sharks! Financial challenges are both the most uncomfortable topic to discuss with friends and family and the one Canadians spend the most time concerned about.
- Nearly 40% of Canadians feel embarrassed about reaching out for financial help. 40%
- 32%, on the other had, say reaching out for financial help would make them feel responsible. 23%
- 78% of Canadians have recently cut back on their expenses. 78%
- 62% of Canadians have recently cut back on what they spend on food. 62%
Find Your Path Forward
As you review these findings, remember that it’s never too early to start dealing with your debts. No matter your level of debt, there are resources and experts available at the Credit Counselling Society who can help you chart a path forward.
Previous Survey Results
Below are past Consumer Debt Reports
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