Survey reveals half of indebted Canadians pay only just above minimums as reliance on credit climbs
Canadians are leaning harder on credit while nearly half say they feel “neutral” about their finances – a combination that quietly raises long-term risk.
According to the Credit Counselling Society’s (CCS) 2026 Consumer Debt Report, about half of indebted Canadians (52 percent) say they are paying only slightly more than the minimum on their balances, while 42 percent report using credit instead of cash more often in 2025 than the year before.
Among those whose debt rose last year, that reliance on credit climbs to 59 percent.
These patterns, layered on top of years of ads and Buy Now Pay Later offers that highlight the payment rather than the total cost, entrench a payment-focused mindset and thin repayment buffers.
At the same time, overall sentiment looks oddly muted.
CCS reports that 45 percent of Canadians feel neutral about their current financial situation heading into 2026, compared with 30 percent who feel anxious and 48 percent who feel confident.
Nearly the same share say their actual position is unchanged: 45 percent report they are “about the same” as a year earlier, while 27 percent say they are worse off and 28 percent say they are better off.
That leaves slightly more Canadians in a worse position than a better one, but without a corresponding surge in urgency.
Peta Wales, president and CEO of the Credit Counselling Society, said what stands out is not that Canadians are comfortable with debt, but that “almost half of respondents characterize their feelings about their financial situation as being neutral when compared with last year.”
In other words, many are “feeling numb to it.”
She adds that “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.”
Cost-of-living pressure still dominates household risk.
As per CCS, 68 percent of Canadians say rising cost-of-living expenses such as housing, food and transportation are their top concern around personal finances, far ahead of worries about job loss, unpaid bills or debt becoming unmanageable.
The report also finds that 46 percent of Canadians with debt saw their total debt, including mortgages, increase over the past year, while only 28 percent report a decrease.
Those who feel anxious about their debt are far more likely to be in the “debt increased” camp than those who feel neutral or confident.
Generational differences point to varying levels of responsiveness.
Millennials (30- to 45-year-olds) appear to be the most proactive: 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 in the past year they have taken on less new debt than either of those younger and older cohorts.
CCS reports that Gen X is the most uncomfortable with its debt levels, while Baby Boomers (62- to 80-year-olds) carry higher average balances but report fewer negative emotions about their finances.
Mark Kalinowski, community relations manager at CCS, said the data show that “financial strain is persistent, but each generation is responding differently.”
He said millennials are adjusting their behaviour and taking earlier action, but warned that when “debt becomes part of everyday life, it can start to feel normal,” dulling the emotional response to worsening finances and prompting people to delay seeking help.
Emotionally, debt remains a clear pressure point even when overall feelings appear flat.
Among Canadians with debt, CCS reports that 46 percent feel uncomfortable with how much they owe, a share that jumps to 64 percent among those whose debt increased last year.
In total, 65 percent say they feel concerned or anxious about their debt. Yet concern does not always translate into seeking support.
79 percent of those anxious about their current debt levels say they would feel negatively about reaching out for help, with embarrassment the most frequently cited reaction.
Kalinowski said many Canadians “feel anxious about their debt, but stigma and embarrassment prevent them from reaching out for help.” He added that even those who are concerned often hesitate, allowing debt to grow unchecked and making solutions harder to find.
Despite this hesitation, most households are not entirely passive.
According to CCS, 84 percent of Canadians say they have taken some kind of action to address their finances, and 73 percent of those with debt report making lifestyle changes, most commonly cutting back on discretionary spending and focusing on essentials.
However, the prevalence of minimum or near-minimum payments and the growing use of credit to cover day-to-day expenses suggest that many are managing cash flow rather than reducing balances in a meaningful way.
Kalinowski said “neutrality can be risky.”
When people become numb to their long-term finances, they may focus only on weekly payments and day-to-day expenses instead of reducing their overall balances.
He added that the high cost of living leaves many feeling they have little control to improve their situation, which can make tackling the problem harder.
