ONTARIO-From the phenomenon of ads selling cars based on weekly payments to the golden era of Buy Now Pay Later (BNPL) plans, attitudes toward credit have shifted noticeably according to the Credit Counselling Society. The increased focus on managing the payment – rather than the total cost of a purchase – masks the true weight of the shift. This normalization of credit and reliance on minimum payments is setting Canadians up for financial hardship in the face of changing financial circumstances.
With consumer debt levels continuing to climb, the Credit Counselling Society’s (CCS) 2026 Consumer Debt Report reveals that about half of Canadians (52 per cent) report paying only slightly above the minimum on their balances. Coupled with an increasing reliance on credit instead of cash — 42 per cent reporting they used credit more often in 2025 than the previous year, rising to 59 per cent among those whose debt increased in 2025 — these patterns underscore how habitual credit use and minimum payments undermine Canadians’ resilience.
CCS says deteriorating financial health can begin to feel familiar rather than alarming when credit use and minimum payments are the norm and financial pressures show no signs of easing. Nearly half of Canadians (45 per cent) report feeling neutral about their financial situation at the start of 2026 compared to the year before, neither anxious nor confident about how their finances have changed.
“What stands out is not that Canadians are comfortable with debt, but rather it appears almost half of respondents characterize their feelings about their financial situation as being neutral when compared with last year – in other words, they are feeling numb to it,” states Peta Wales, President & CEO of the Credit Counselling Society. “Debt remains a source of stress and anxiety, and ongoing financial pressure can lead individuals to become desensitized to change, even as their balances continue to rise.”
Data across all age groups from within CCS shows a steady increase in Canadians seeking credit counselling year over year, along with higher average debt levels. However, the responses differ by generation.
According to CCS’s 2026 Consumer Debt Report, Millennials (30- to 45-year-olds) appear to be taking the most proactive steps. They are more likely than Gen X (46- to 61-year-olds) or Gen Z (14- to 29 year olds) to have addressed debt pre-emptively and, over the past year, have taken on less new debt than either Gen X or Gen Z. Gen X is the most uncomfortable of any generation with their debt levels. Baby Boomers (62- to 80-year-olds), despite carrying higher average balances, report fewer negative emotions about their finances.
“These patterns show that financial strain is persistent, but each generation is responding differently,” states Mark Kalinowski, Community Relations Manager at CCS. “Millennials are adjusting their behaviour and taking earlier action. At the same time, when debt becomes part of everyday life, it can start to feel normal. That normalization can dull the emotional response to worsening finances and cause people to delay reaching out for help.”
Among those with debt, 46 per cent feel uncomfortable with how much they currently owe, a number that rises to 64 per cent for those whose debt increased last year.
Sixty-five per cent report concerns about their debt. In addition, among those anxious about their current debt levels, 79 per cent report feeling negatively about reaching out for support, with embarrassment cited as the most frequent barrier.
“Many Canadians feel anxious about their debt, but stigma and embarrassment prevent them from reaching out for help,” states Kalinowski. “Even those who are concerned often hesitate, which can allow debt to grow unchecked and makes finding solutions more difficult.”
Eighty-four per cent say they have done something to address their finances, and 73 per cent report making lifestyle changes.
“Neutrality can be risky,” explains Kalinowski. “When people become numb to their long-term financial situation, they may continue to focus only on whether they can manage the weekly payment and day-to-day expenses rather than reducing their overall balances. Coupled with the ongoing high cost of living, many feel that little is within their control to improve their situation, which can make tackling the problem harder.”
Officials say the findings highlight a gap between financial reality and how Canadians respond to it. Many people know the steps they should take to manage debt, but taking meaningful steps can feel overwhelming when money is tight and using credit to cover shortfalls is normal. Normalization of debt and payment-focused thinking can mask growing consumer vulnerability, and when the cost of living consistently outpaces incomes, apathy can set in. This leaves people less motivated to take steps that could improve their financial situation.
According to CCS reducing stigma and raising awareness of support options to manage debt can help Canadians feel more empowered to take control of their finances. With guidance, realistic budgeting, and structured repayment plans, even those who have become numb to long-term financial pressures can make meaningful progress toward stability.
To speak with a certified credit counsellor, visit nomoredebts.org or call 1-888-527-8999.
