Mark Kalinowski, with nearly 14 years of experience as a credit counselor, has observed a significant increase in the number of clients under 35 seeking debt management assistance at his Calgary office this year. The Credit Counselling Society, where Kalinowski is employed, assisted more individuals in the 18-34 age bracket in 2025 than ever before, according to a spokesperson.
A notable portion of these young clients are burdened by student loans, grappling with their first credit card responsibilities, and struggling to cope with the rising cost of living juxtaposed with stagnant wages. The prevalence of “buy now, pay later” schemes is exacerbating the financial challenges faced by individuals in their 20s and 30s, as highlighted by Kalinowski and other experts.
Jodi Letkiewicz, an assistant professor at California State University, emphasized that the root issue for the younger demographic lies not in accumulating debt but in the sources of that debt. Letkiewicz explained that it often stems from basic expenses rather than frivolous spending, indicating financial strains caused by the high cost of living.
The surge in buy now, pay later options, enabling consumers to stagger payments for online purchases, plays a pivotal role in shaping the financial landscape. Studies have shown that younger consumers, particularly in the U.S., are inclined to utilize these services for online shopping, leading to increased spending and potential financial pitfalls.
While research on the impact of these payment plans in Canada is limited, concerns are raised about the ease of access and fragmented nature of such services, exemplified by platforms like Klarna, Affirm, and PayPal. This accessibility may contribute to difficulties in managing multiple payments, creating a challenging financial scenario for young individuals.
Rebecca Oakes, Vice President of Research at Equifax, noted that younger cohorts are more vulnerable to economic fluctuations and are witnessing a rise in credit card balances and missed payments. Data from Equifax and TransUnion highlight an increasing trend of missed payments among individuals under 35, indicating ongoing challenges in financial management.
Despite these challenges, Kalinowski encourages proactive financial management among young clients, emphasizing the importance of seeking assistance early on to address and resolve financial issues efficiently. The willingness of younger individuals to acknowledge and address their financial struggles is viewed as a positive step towards achieving financial stability and moving forward.