Mark Kalinowski, a seasoned credit counselor with almost 14 years of experience, has observed a notable trend in his Calgary office this year. A significant portion, over a quarter, of his clients under the age of 35 sought assistance with managing their debt. Kalinowski empathized with these young individuals, noting their frustration and sense of being stuck in life.
The Credit Counselling Society, where Kalinowski is employed, disclosed to CBC News that they assisted more individuals between the ages of 18 and 34 in 2025 than ever before. Many of these young clients are burdened with substantial student loans, grappling with handling their first credit cards, and struggling to cope with the rising cost of living juxtaposed with sluggish income growth.
In addition to these financial challenges, experts like Kalinowski highlight the detrimental impact of prevalent “buy now, pay later” schemes on the debt landscape of individuals in their 20s and 30s. These payment plans, while seemingly convenient, are exacerbating the debt crisis among this demographic, leaving them feeling overwhelmed and unsure of how to make progress.
Jodi Letkiewicz, an assistant professor at California State University, emphasized that the issue lies not in the accumulation of debt itself, but rather in the sources of debt. Letkiewicz explained that many young adults are using credit to cover basic expenses, signaling underlying economic strains. The ease of access to services like Klarna, Affirm, and PayPal for online shopping is raising concerns, as it fragments debt management and complicates financial oversight for consumers.
Rebecca Oakes, the vice president of research at Equifax, noted that younger generations tend to struggle more with economic fluctuations and are less equipped to handle financial challenges compared to older age groups. Data from Equifax revealed a concerning trend of rising credit card balances and missed payments among individuals under 30, underscoring the financial pressures faced by young Canadians.
Despite these challenges, there is a silver lining in the proactive approach taken by younger clients seeking assistance early on. Kalinowski highlighted the importance of addressing financial issues promptly to find solutions and move forward positively in life.
In conclusion, the prevalence of debt among Canadians under 35, coupled with missed credit payments and the allure of buy now, pay later services, paints a complex picture of financial struggles faced by young adults in today’s economy.
