{"id":62721,"date":"2025-08-06T12:00:23","date_gmt":"2025-08-06T12:00:23","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/08\/06\/posthaste-despite-stable-interest-rates-young-canadians-struggle-to-pay-the-bills\/"},"modified":"2025-08-06T12:00:23","modified_gmt":"2025-08-06T12:00:23","slug":"posthaste-despite-stable-interest-rates-young-canadians-struggle-to-pay-the-bills","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/08\/06\/posthaste-despite-stable-interest-rates-young-canadians-struggle-to-pay-the-bills\/","title":{"rendered":"Posthaste: Despite stable interest rates, young Canadians struggle to pay the bills"},"content":{"rendered":"<p> \n<br \/><br \/>\n<iframe loading=\"lazy\" height=\"100%\" src=\"https:\/\/cdn.jwplayer.com\/videos\/9ISNxhdV.mp4\" width=\"100%\"><\/iframe><br \/>\n<img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/01\/fp-posthaste-LOGO-01132023.jpg\" title=\"\" \/><\/p>\n<p> The <\/p>\n<p>                        Bank of Canada<\/p>\n<p>                        \u2018s benchmark <\/p>\n<p>                        interest rate<\/p>\n<p>                         has remained at 2.75 per cent since March 12, but the stability hasn\u2019t given young Canadians much relief when it comes to their bills. <\/p>\n<p> Canadians aged 18\u201334 are taking drastic measures to make ends meet, including high-interest short-term loans when other strategies fail, according to a recent report from the Credit Counselling Society (CCS). <\/p>\n<p> \u201cA steady interest rate doesn\u2019t undo years of financial strain,\u201d CCS chief executive Peta Wales said <\/p>\n<p>                        in a news release.<\/p>\n<p>                         \u201cMany young Canadians are already deep in debt. They\u2019re borrowing small amounts just to cover essentials, and over time, those borrowing decisions stack up.\u201d <\/p>\n<p> The number of young Canadians to reach out to CCS has climbed seven per cent since 2023, now amounting to 25 per cent of all clients. The survey also reported that they face an average debt load of $24,000, up nine per cent from 2023. <\/p>\n<p> \u201cThe sheer volume of people in their 20s and 30s we\u2019re hearing from speaks to how much financial pressure they are feeling from their mounting debt,\u201d said Isaiah Chan, a vice president at CCS. \u201cThey\u2019re doing what they can \u2014 working, budgeting, cutting back \u2014 but it\u2019s not enough to offset today\u2019s cost of living.\u201d <\/p>\n<p> While young Canadians struggle with overall debt, <\/p>\n<p>                        mortgage debt<\/p>\n<p>                         appears to be on the decline. <\/p>\n<p>                        A recent report from TD Economics<\/p>\n<p>                         shows that mortgage balances among Canadians under age 35 has dropped, while those of all other age groups have risen. <\/p>\n<p> There are several possible explanations, the report said, including younger Canadians opting for less expensive homes when entering the <\/p>\n<p>                        housing market<\/p>\n<p>                         or downsizing due to cost pressures. <\/p>\n<p> The report also points to the possibility of young Canadians receiving mortgage help from older relatives. Older Canadians have taken on more debt, but data doesn\u2019t show a spike in new investment properties or renovations, meaning the debt is is attributable to something else. <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-05-110704.png\" title=\"\" \/><\/p>\n<p> A 2021 study from Statistics Canada showed that 17.3 per cent of homeowners born in the 1990s co-owned with their parents, while 20 per cent of first-time home buyers were gifted a down payment, according to the Bank of Canada. <\/p>\n<p> Those struggling to pay down their debt may have to wait for some help as <\/p>\n<p>                        economists said last week<\/p>\n<p>                         that any movement on rates in September is unlikely, though it\u2019s unclear what might happen with the other two rate announcements in 2025. <\/p>\n<p> CCS is urging anyone feeling overwhelmed with debt to reach out for professional help. <\/p>\n<p> \u201cYou don\u2019t need to hit rock bottom to get help,\u201d Chan said. \u201cIf you\u2019re unsure what to prioritize, how to juggle payments, or even what solutions are available to you, that\u2019s exactly when to talk to someone. You don\u2019t have to figure it out alone.\u201d <\/p>\n<hr \/>\n<p> <em><strong>\u00a0Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n<hr \/>\n<p> <strong><br \/> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-1758646\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_leading.png\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/08\/June-2025-merchandise-trade.png\" title=\"\" \/><\/p>\n<p> The latest trade numbers shows that <\/p>\n<p>                        U.S. tariffs<\/p>\n<p>                         are taking a toll on exporters, particularly in the steel, aluminum and automobile industries. <\/p>\n<p> Statistics Canada data released Tuesday shows Canada\u2019s trade deficit ballooned to $5.9 billion in June,<\/p>\n<p>                        <strong>\u00a0<\/strong><\/p>\n<p>                        from $5.5 billion in May. <\/p>\n<p> \u201cCanada\u2019s deficit in goods trade was little changed in June, albeit with plenty of moving pieces in the detail due to U.S. tariff policy,\u201d Andrew Grantham, an economist with CIBC Capital Markets, said in a note. <\/p>\n<p> Exports to the U.S. fell 12.5 per cent year-over-year, while imports from the U.S. were down 4.2 per cent. <\/p>\n<p> Read more here. <\/p>\n<hr \/>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/07\/subhead-1.jpg\" title=\"\"><\/p>\n<ul>\n<li><strong>Today\u2019s data: <\/strong>U.S. global supply chain pressure index for July<\/li>\n<li><strong>Earnings: <\/strong>Novo Nordisk A\/S, McDonald\u2019s Corp., Walt Disney Co., Uber Technologies Inc., Shopify Inc., Sony Group Corp., DoorDash Inc., Brookfield Asset Management, Thomson Reuters Corp., Airbnb Inc., Manulife Financial Corp., Honda Motor Co. Ltd., Nutrien Ltd.<\/li>\n<\/ul>\n<p> \u00a0 <\/p>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080180\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_marketsam.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\" Financial Post\" data-has-syndication-rights=\"1\" data-license-id=\"3899637\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/08\/chart-0806-ph.jpg\" title=\" Financial Post\" \/><\/p>\n<figure class=\"embedded-image\"><\/figure>\n<hr \/>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080181\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_reads.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<ul>\n<li>Canada\u2019s trade struggles to \u2018find new footing\u2019 as exports to U.S. drop 12.5%<\/li>\n<li>Here\u2019s why the CRA should keep taxing tips even as the U.S. shies away from it<\/li>\n<li>Canada Post workers reject \u2019final offers\u2019 \u2014 what happens next?<\/li>\n<li>Brookfield buys stake in Duke Energy\u2019s Florida utility for $6 billion<\/li>\n<\/ul>\n<ul><\/ul>\n<ul><\/ul>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-2059284\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2020\/04\/subhead_personal_finance_2.png\" width=\"838\" \/> <\/p>\n<p> Regulators are warning consumers to be careful about taking financial advice from online influencers or so-called \u201cfinfluencers.\u201d Financial planner Jason Heath says that while the criticism is mostly justified it also ignores some of the benefits of following financial influencers and some of the problems with relying solely on the financial industry itself. <\/p>\n<p>                        Find out more <\/p>\n<hr \/>\n<div class=\"x_elementToProof\"><span>Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at\u00a0<\/span>wealth@postmedia.com<span><\/span><span>\u00a0with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n<hr \/>\n<h2>McLister on mortgages<\/h2>\n<p> Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s <\/p>\n<p>                        Financial Post column <\/p>\n<p>                        can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his <\/p>\n<p>                        mortgage rate page<\/p>\n<p>                         for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n<hr \/>\n<h2>Financial Post on YouTube<\/h2>\n<p> Visit the Financial Post\u2019s <\/p>\n<p>                        YouTube channel<\/p>\n<p>                         for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n<hr \/>\n<p> <em>Today\u2019s Posthaste was written by Ben Cousins\u00a0with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.<\/em> <\/p>\n<p> Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at\u00a0<\/p>\n<p>                        posthaste@postmedia.com<\/p>\n<p>                        . <\/p>\n<hr \/>\n<ul class=\"related_links\">\n<li>Why the Bank of Canada could still cut interest rates \u2014 eventually<\/li>\n<li>Cracks widen in Canadians&#8217; record-breaking wealth creation<\/li>\n<\/ul>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add\u00a0financialpost.com\u00a0to your bookmarks and sign up for our newsletters here<\/em> <\/p>\n<p><\/img><br \/>\n<br \/>\n<br \/>Posthaste: Despite stable interest rates, young Canadians struggle to pay the bills<\/a><br \/>\n<br \/>2025-08-06 12:00:23<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Canada \u2018s benchmark interest rate has remained at 2.75 per cent since March 12, but the stability hasn\u2019t given young Canadians much relief when it comes to&#8230;<\/p>\n","protected":false},"author":2,"featured_media":62722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-62721","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/62721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=62721"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/62721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/62722"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=62721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=62721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=62721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}