Canada’s financial sight is shifting, and not in the direction most households hoped for. In 2025, an increasing number of Canadians are struggling to keep up with their payments, reflecting a deeper stress across the economy. Recent data shows nearly 1.4 million Canadians missed at least one credit payment in the second quarter alone, an increase of 118,000 compared to the same period in 2024. This isn’t just a number. It’s a signal that many families and individuals are stretched thinner than ever. Let’s explore why More Canadians Are Missing Payments in 2025

Who’s Feeling the Pressure Most?

The data paints a clear picture:
Non-mortgage borrowers are under the most strain.

• 1 in 19 non-mortgage consumers fell behind on payments.
  
• Only 1 in 37 mortgage holders did, highlighting the financial buffer home equity often provides.

The most vulnerable groups include:

Younger Canadians (Under 36)

They’ve seen the fastest rise in missed payments, nearly a 20% year-over-year increase. Auto loans and credit cards are driving the spike, reflecting the challenge of balancing rising living costs with entry-level wages and unstable job markets.

Where Is Delinquency Rising the Fastest?

Ontario and Alberta lead the trend.

Ontario:

• 90-day delinquency rate on non-mortgage debt: 1.75%
  
• Hotspots: Toronto, GTA, Hamilton

Alberta:

• Delinquency rate: 1.98%
  
• Hotspots: Edmonton, Fort McMurray, Calgary

These regions are being hit hard by a combination of high living costs, employment shifts, and rising debt loads.

Why Are More Canadians Falling Behind in 2025?

The rise in delinquency is no mystery; several factors are converging:

Cost of Living Outpacing Income

Expenses have surged faster than wages, pushing many households to depend on credit for everyday essentials.

Persistent Inflation

Food prices are up 20%+ since 2020, utilities are higher, and fuel isn’t easing up, creating ongoing budget pressure.

Record-High Consumer Debt

Canada’s consumer debt has crossed $2.5 trillion, making even small financial disruptions overwhelming.

Economic Uncertainty

Layoffs, industry shifts, and inconsistent job opportunities leave many without stable income protection.

What Can Canadians Do Right Now?

If you’re falling behind or feel like you’re on the edge, you’re far from alone. There are proactive steps that can help stabilize your financial footing:

• Prioritize essential payments like housing, utilities, and groceries.
  
• Reach out to lenders early; options like restructuring or temporary relief may be available.
  
• Explore credit counseling to get personalized support.
  
• Build a realistic budget that reflects your current situation, not last year’s.
  
• Consider debt consolidation if you struggle to manage multiple payments.

Small shifts today can prevent bigger financial consequences tomorrow.

Conclusion

The rise in missed payments isn’t a failure; it’s a reflection of the economic pressures Canadians are facing daily. But navigating financial stress doesn’t have to be isolating or overwhelming.

Cannect specializes in helping Canadians get back on stable financial ground, whether through smarter refinancing, consolidation solutions, or personalized guidance that traditional lenders often overlook.

If you’re feeling the weight of overdue payments or rising debt, now is the time to reset your financial strategy.

Take control before the pressure grows.

Connect with Cannect today and explore the options designed to help you breathe easier and move forward with confidence.