The Cost of Growing Up: Why Young Canadians Are Struggling with Debt

It’s no secret that Canadian youth are entering adulthood during one of the most financially challenging times in recent history. From a stagnating job market to rising inflation, young people—especially those under 26—are finding themselves caught in a storm of economic uncertainty. And now, new data from Equifax Canada shows a disturbing trend: delinquencies among this age group are rising sharply, particularly when it comes to credit cards and auto loans.

We’re talking about a 15.1% increase in missed payments for people aged 18 to 25. For credit card delinquencies alone, the number jumps to a staggering 21.7% increase in 90-day or more missed payments. Compare that to the general population’s 15.8% increase, and it becomes clear that young Canadians are bearing the brunt of the current financial climate.

Why is this happening? For starters, wages aren’t keeping pace with the cost of living, especially for those entering the workforce. Imagine trying to build a life when rent eats up more than half your income, groceries cost more every week, and you’re lucky if your job even offers full-time hours, let alone benefits. Kathy Catsiliras of Equifax Canada put it plainly: balancing debt and daily living expenses is more difficult than ever.

Then there’s the job market—or lack thereof. Canada’s unemployment rate rose to 6.9% in April, and young workers are often the first to be let go when companies downsize. Add to that the ripple effects of U.S. trade policies (yes, those Trump-era tariffs are still biting), and it’s no wonder youth are leaning on credit just to make ends meet.

Auto loan delinquencies among young drivers? Up 30%. That’s not just poor financial planning; that’s the cost of needing a car to get to work, even if you’re only making minimum wage.

Financial experts rightly point out that some of these delinquencies stem from inexperience. Many young Canadians are navigating credit for the first time, learning hard lessons about interest rates and payment deadlines. But this “trial by fire” shouldn’t be an inevitable rite of passage. It should be a wake-up call for institutions, educators, and policymakers to do better.

Yes, personal responsibility matters. Budgeting, understanding repayment terms, and avoiding unnecessary debt are all essential. But telling young people to “just budget better” when rent, food, transportation, and student loans leave no room for error isn’t just tone-deaf—it’s dismissive of the reality they face.

We need a more comprehensive approach. That means integrating financial literacy into education long before high school graduation. It means employers paying fair, livable wages, not just offering “experience.” It means government policies that tackle housing affordability and student debt relief.

Because let’s be clear: this isn’t just about a few kids missing credit card payments. It’s about an entire generation trying to build their lives on shaky financial ground. And unless we address the root causes, those delinquency numbers are only going to climb.