Canadians owe more than money as debt strains daily life

Canadians are struggling under the weight of non-mortgage debt, and the pressure is not just financial.  

A survey by Harris & Partners, a Licensed Insolvency Trustee firm, reveals that the emotional and mental toll of personal loans, credit cards, and payday loans is widespread. 

50.5 percent said they feel stressed while managing their debt.  

More than two-thirds—68.4 percent—reported that debt makes them anxious, and 39.8 percent admitted that it is harming their personal relationships. 

“Debt stress is a silent burden carried by millions of Canadians,” said Joshua Harris, licensed insolvency trustee at Harris & Partners.  

“For some, it’s about making ends meet; for others, it’s the pressure of juggling multiple payments while staying financially afloat. No matter the reason, the mental and emotional toll is real and significant.”  

The survey found that 76.8 percent of respondents had carried credit card debt in the past two years. Personal loans followed at 35.4 percent, with payday loans affecting 22.7 percent.  

In total, 53.4 percent of Canadians borrowed money over the past two years just to pay for necessities like food, rent, or utilities. 

Only 27.4 percent said they could manage a $500 emergency using savings.  

Nearly 23.1 percent admitted they would not be able to cover such an expense at all, and the remainder said they would borrow money, sell possessions, or go without. 

According to Harris, stigma around debt often keeps people from reaching out for help.  

“We see it all the time: debt can strain marriages, create tension between family members, and make people feel isolated or ashamed,” he said. 

Debt-related anxiety is not just internal—nearly 40 percent said their personal relationships are being negatively affected.  

The burden has crept into everyday decisions as well, with 87 percent of respondents saying financial concerns impact their daily lives.  

Of those, 15.2 percent said those worries “always” affect their choices. 

While 49.4 percent of Canadians described themselves as “somewhat confident” in financial management, only 11.3 percent said they always stick to a budget.  

At the same time, 16.9 percent said they lack confidence in understanding how interest rates affect their debt. A total of 60.2 percent admitted to spending beyond their means. 

“Debt doesn’t have to define your life,” Harris said. “We want Canadians to know there’s always a way forward. Whether it’s creating a personalized debt management plan or filing for insolvency, solutions are available.” 

Harris & Partners recommends three initial steps: starting a budget to monitor spending, building an emergency savings fund—even with small amounts—and seeking advice from a licensed insolvency trustee.