Young Canadians may be more worried about their debt

Posted On: October 31, 2023

(Toronto) Young Canadians are more worried about their personal debt and are more likely to have missed a bill payment this year, according to results of a survey by Equifax Canada.

Updated yesterday at 3:12 p.m.

Rosa Saba

The Canadian Press

“This has been an incredibly stressful time for Canadian households just managing their daily expenses,” noted Julie Kuzmic, senior compliance officer for consumer advocacy at Equifax Canada.

Young adults “seem to feel financial hardship more than their older counterparts,” the report said.

In fact, according to the survey conducted in September, 36% of young adults said they have not paid a bill this year, compared to 23% of all respondents.

Additionally, 52% of respondents aged 18 to 34 are worried about their personal debt, compared to 39% of the broader respondent group.

The credit bureau recently found that Canadians’ credit card debt hit an all-time high in the second quarter as lower-income households found it harder to control their spending.

“It’s no secret that credit card debt carries a higher interest rate and therefore can be more stressful for people who rely on credit cards to meet their daily needs,” recalls M^Me Kuzmic.

“It’s certainly no surprise that Canadians’ anxiety about their personal finances is relatively high. And unfortunately, it’s very likely that there is a connection between the higher balances we see on credit cards and people’s anxiety. »

According to Equifax Canada, housing is a major issue facing Canadians. Three in 10 respondents said they would need to find additional income to cover higher mortgage or rent payments.

The agency expects this fear to continue to grow as many households still need to renew their mortgages at significantly higher interest rates. The Bank of Canada’s overnight interest rate has been at 5.0% since July.

Nearly 20% of respondents said they are in a precarious financial situation and may need to move due to financial constraints.

The survey also found that young Canadians are more likely to look for second or third jobs or “casual jobs” to meet their financial obligations.

“A number of people admitted that higher mortgage or rent payments forced them to find additional income,” Ms said^Me Kuzmic.

The Equifax survey was conducted online Sept. 15-18 among 1,564 Canadians who were members of an online panel run by Léger.