Why 43% of Canadians Need Debt Help & How to Take Control
March marks Debt Literacy Month, a time dedicated to helping Canadians better understand and manage debt. But as the cost of living rises and wages fail to keep up, financial struggles are becoming the norm for many households.
According to a recent Ipsos survey, 43% of Canadians say they need help getting out of debt, yet many feel ashamed, overwhelmed, or unsure where to turn. While most people believe there’s no shame in seeking help, 40% still feel stigma around bankruptcy, and 66% don’t think their debt situation is serious enough to get assistance.
The reality is that debt doesn’t have to control your life. With the right strategies and support, financial stability is possible.
The Debt Crisis in Canada: What the Numbers Reveal
- Total consumer debt reached $2.56 trillion in 2024, a 4.6% increase from the previous year
- Non-mortgage debt per consumer is now $21,931, surpassing pre-pandemic levels
- Mortgage delinquencies in Ontario surged by 90.2%, with 11,000 homeowners missing payments in late 2024
- 26% of Canadians only pay the minimum balance on their credit cards, keeping them trapped in a debt cycle
The financial pressure is real and growing. Rising costs, stagnant wages, and high-interest debt have made it harder for Canadians to regain control.
Why Many Canadians Avoid Seeking Debt Help
Despite the financial strain, many Canadians hesitate to get help due to misconceptions and fears:
- “My debt isn’t bad enough yet.” Sixty-six percent of people don’t believe they need debt relief, even when they struggle with payments.
- “Debt help companies can’t be trusted.” Fifty-three percent have difficulty trusting professional debt relief services, despite many legitimate options.
- “I’m too embarrassed.” Forty-eight percent would feel ashamed if they had to seek bankruptcy, and 40% say stigma prevents them from asking for help.
- “I have to protect my home and credit.” Many homeowners prioritize mortgage payments at all costs, sometimes at the expense of other essential bills.
- “I don’t want to get scammed.” Sixty-three percent worry about fraudulent debt relief programs, making them reluctant to seek solutions.
The first step toward financial recovery is overcoming these fears and recognizing that help is available.
Breaking the Debt Cycle: Where Canadians Struggle Most
Debt struggles don’t affect all Canadians equally. Some groups are more vulnerable than others:
- Younger Canadians (18-34) are the most likely to:
- Only pay minimums on credit cards (31%)
- Skip or delay bill payments (27%)
- Sell belongings to make ends meet (23%)
- Lower-income households (earning under $40K) are more likely to:
- Struggle with financial trust and fear scams
- Need help getting out of debt (56%)
- Feel overwhelmed by debt (53%)
- Ontario and Alberta residents report the highest levels of debt stress, with rising missed payments and mortgage delinquencies.
If you see yourself in these statistics, you’re not alone. No matter your situation, there are steps you can take to regain control.
How to Take Control of Your Debt Today
Get a Clear Picture of Your Debt
- List all debts, including balances, interest rates, and due dates
- Identify which debts are costing you the most in interest
Prioritize Repayment
- Avalanche Method: Pay off high-interest debt first to save money
- Snowball Method: Pay off smallest balances first to build motivation
Adjust Your Spending Plan
- Allocate 60-70% of income to essentials (rent, food, utilities)
- Dedicate 20-30% to debt repayment and savings
- Reduce discretionary spending until debt is under control
Explore Your Options
- Debt consolidation: Combining debts into one lower-interest payment
- Credit counseling: Professional guidance to create a structured repayment plan
Seek Help Before It’s Too Late
If debt is impacting your quality of life, don’t wait. There are solutions available to help you get back on track.
How Pyxis Solutions Helps Canadians Manage Debt
At Pyxis Solutions, we work differently from traditional collection agencies.
If we’ve contacted you, it means we’ve acquired your debt from a previous creditor. But we’re not here to make your situation harder—we’re here to help you find a realistic repayment plan that works for you.
What Makes Pyxis Solutions Different?
- Flexible Repayment Solutions
- We create a plan based on your financial situation, not a one-size-fits-all demand.
- Lower Repayment Options
- In some cases, we may be able to reduce the total balance owed.
- Judgment-Free Support
- Our approach is focused on finding solutions, not placing blame.
- Resources & Financial Education
- We help you understand how to manage debt and avoid financial pitfalls in the future.
If you’ve been contacted by Pyxis, we’re here to work with you, not against you.
Call us today: 1-888-354-8900
Visit us online: PyxisGroup.org
Final Thoughts: Debt Doesn’t Have to Define Your Future
Debt can feel overwhelming, but there are ways to break free. Whether you’re struggling with credit cards, past-due bills, or mortgage payments, taking action today can prevent bigger problems down the road.
You are not alone, and help is available.
If you’re facing financial hardship and need a structured, manageable way forward, Pyxis Solutions is here to help. Let’s find a solution that works for you.
Call us now: 1-888-354-8900
Visit us online: PyxisGroup.org