Canada's Rising Debt Crisis: Surging Delinquency Rates Signal Deepening Financial Distress

TORONTO, May 6, 2025 /CNW/ - A new national study from Money.ca reveals that Canada is facing a mounting debt and delinquency crisis, with average non-mortgage debt rising and delinquency rates spiking sharply across the country. The findings from Canada's Rising Debt Crisis shed light on growing financial vulnerability among Canadians, fueled by inflationary pressures, high housing costs, and rising interest rates.

"Delinquency is outpacing debt growth, and that's a red flag," said Romana King, Senior Editor at Money.ca.

The report, which examines data across provinces, cities, and age groups, reveals that while non-mortgage debt rose a modest 3.79% year-over-year, delinquency rates jumped 19.14%, reaching 1.43%—a signal that more Canadians are struggling to meet their financial obligations.

"Delinquency is outpacing debt growth, and that's a red flag," said Romana King, Senior Editor at Money.ca. "This data shows that Canadians are under real pressure—especially younger and older demographics. It's a wake-up call for consumers and policymakers alike to focus on sustainable financial support and education."

Key Findings:

• Debt growth vs. Delinquency: National non-mortgage debt rose to $21,810, but delinquency surged by nearly 20%, suggesting acute financial strain.
  
  
• Google search trends reveal urgency:
  
  • Searches for "budget planner" rose by 152.86% YoY, reflecting growing interest in financial planning.
  • Conversely, "budget app" searches fell 24.32%, hinting at changing preferences.
  • Searches for "payday loans" increased 27.6%, indicating a rise in short-term borrowing needs.
• Regional contrasts:
  
  • Newfoundland saw the highest debt growth (+7.78%) but held delinquency steady (-0.46%).
  • Quebec posted the steepest rise in delinquencies at 24.16%.
  • PEI experienced a 5.47% debt increase, pointing to rising burdens in smaller provinces.
• Urban pressure points:
  
  • Toronto (+24.16%) and Vancouver (+19.00%) recorded significant delinquency spikes, amid persistently high living costs.
  • Halifax and St. John's remained relatively stable.
• Generational divide:
  
  • Young adults (18–25) experienced a 17.02% rise in delinquencies.
  • Pre-retirees (56–65) saw the biggest debt jump (+6.28%) and a 16.88% rise in delinquencies.
  • Seniors (65+), while carrying the lowest debt ($14,575), experienced an 8.12% increase in delinquency due to growing cost-of-living and healthcare expenses.

A Nation Under Pressure

These findings point to a broader trend: Canadians across all regions and life stages are feeling the pinch. The report urges financial institutions, policy-makers, and community organizations to prioritize financial literacy, accessible credit tools, and support systems to help Canadians regain stability.

For the full study, read Canada's Rising Debt Crisis on Money.ca

SOURCE Wise Publishing, Inc.