More Canadians Falling Behind on Payments as Economy Struggles, Report Says
A new report from Equifax shows that more Canadians are missing credit payments as economic uncertainty grows. In the first three months of 2025, about 1 in every 22 consumers—or 1.4 million people—missed at least one payment.
Rebecca Oakes, a vice-president at Equifax Canada, says this is mostly because of the rising cost of living, more people losing their jobs, and problems in global trade.
“To keep up with payments, people need steady jobs and good incomes,” Oakes said. “When the economy is uncertain, it causes challenges.”
Even though credit card spending dropped by an average of $107 per person, many still missed payments. Oakes believes people are cutting back on non-essential spending, which can hurt businesses and lead to more job losses. “Everything is connected,” she said.
Younger People Struggling More
The report found that credit problems are hitting young people especially hard. Among them, credit card delinquency (late payments) rose to 5.38%, which is a 21.7% increase from last year.
In general, non-mortgage debt (like credit cards and auto loans) went up to $21,859 per person. One reason is that people rushed to buy cars before prices might go up due to tariffs.
The total amount of consumer debt in Canada reached $2.55 trillion in early 2025. That’s 4% more than a year ago, though slightly lower than at the end of 2024. A big reason for this is many people renewing their mortgages. Those who got low interest rates during the pandemic are now facing higher payments, which Oakes called “the great renewal.”
Ontario Faces Big Financial Struggles
Ontario is feeling the pressure more than other provinces. The number of people behind on mortgage payments for more than 90 days jumped to 0.24%. The province also had the highest rate of late non-mortgage payments, up 24% compared to last year. Alberta and Quebec followed.
“We’re seeing more and more people with mortgages in Ontario falling behind,” said Oakes.
