Mark Kalinowski, an experienced credit counselor for almost 14 years, has noticed a significant increase in clients under 35 seeking debt assistance at his Calgary office this year. The Credit Counselling Society, where Kalinowski is employed, assisted more individuals aged 18 to 34 in 2025 than ever before.
A growing number of young adults are grappling with various financial challenges, including hefty student loans, managing credit cards for the first time, and coping with the rising cost of living amid sluggish wage growth. Additionally, the proliferation of “buy now, pay later” schemes is exacerbating the debt crisis among individuals in their 20s and 30s.
According to Jodi Letkiewicz, an assistant professor, the issue lies not in the accumulation of debt but in the sources of debt, which often stem from essential expenses rather than frivolous spending. This trend highlights underlying economic disparities and financial struggles faced by many young people.
The surge in popularity of buy now, pay later plans, allowing consumers to spread out payments for online purchases, poses a significant financial challenge. Research indicates that younger consumers, particularly in the U.S., are more inclined to utilize these plans, leading to increased spending and potential financial pitfalls.
Experts caution that the convenience of services like Klarna and Affirm may contribute to financial instability by making it easier for individuals to accrue debt across multiple platforms, complicating debt management. Younger generations are more susceptible to missing credit card payments, signaling a lack of financial resilience during economic fluctuations.
Despite efforts to stabilize their financial situations, many young consumers continue to struggle with missed payments and escalating credit card balances. Seeking assistance early on can help mitigate long-term credit repercussions and pave the way for financial recovery.
Kalinowski emphasizes the importance of addressing financial challenges promptly, noting that taking proactive steps to tackle debt issues can lead to quicker resolutions and a smoother path towards financial stability for young individuals.
