Cost-of-living expenses are a significant concern for Canadians, according to the 2025 Consumer Debt Report released by the Credit Counselling Society.
Seventy-one percent of Canadians considered the rise in cost-of-living expenses their primary concern. Among these, 54 percent cited uncontrollable economic factors.
Looming tariffs have added to consumers’ anxiety.
“Consumers were already feeling the strain of increased day to day expenses. Then, as additional information about potential tariffs emerged in the weeks leading up to President Trump's inauguration, the likelihood of price increases and even the potential for job losses, only heightened feelings of anxiety and stress,” said Peta Wales, CCS president and CEO, in a statement.
Fifty-four percent of Canadians were concerned about debt; anxiety ticked up among 84 percent of these. However, 57 percent of those surveyed completely did not react to their debt, while 27 percent of those worried about their finances said they had screamed in frustration.
“Unfortunately, we continue to see a trend of Canadians normalizing debt with a focus on only addressing their minimum payments. With record-high debt levels, consumers are grappling with the rising cost of living, and credit cards - which were once used primarily for emergencies - are now being used to carry month over month balances,” Wales said. “Add on the prospect of tariff induced price increases or reduced income from layoffs, and many are left feeling numb and overwhelmed.”
Nineteen percent of respondents were four times more likely to weep over debt than coordinate with creditors – only 5 percent were willing to do the latter. Fifty-seven percent were seven times more likely to do nothing about their debt than speak to a credit counsellor – only 8 percent were willing to do so. These respondents confirmed that they had debt fatigue.
“The danger with becoming complacent about your obligations is that a small shift in your circumstances – such as reduced hours at work or an increase in the cost of an essential, like gas, can suddenly make your financial situation extremely difficult to manage,” said Isaiah Chan, CCS VP of programs and services.
Nonetheless, the survey showed that many Canadians are reacting to rising debt and debt fatigue proactively by reducing spending on essentials (70 percent), selling personal items (34 percent), changing their living arrangement (12 percent), and consulting a financial advisor (44 percent).
“Surprisingly, of Canadians who had an increase in debt this past year, we also saw that 44 percent took on a second job as they worked to proactively manage their higher debt load. While this was almost three times higher than the prior year, (at 16 percent), it may not remain a viable option if the economy contracts due to geopolitical circumstances,” Wales said.