Mark Kalinowski, a credit counselor with almost 14 years of experience, has observed a significant increase in clients under the age of 35 seeking debt management assistance at his Calgary office this year. Many of these young clients are burdened with student loans, grappling with their first credit card responsibilities, and struggling to cope with the rising cost of living juxtaposed with stagnant wage growth.
According to the Credit Counselling Society, a non-profit organization where Kalinowski is employed, the number of 18-to-34-year-olds seeking assistance in 2025 reached a record high. The surge in debt issues among this demographic is further exacerbated by the prevalence of “buy now, pay later” schemes, leading to a concerning debt crisis for young adults.
Jodi Letkiewicz, an assistant professor at California State University, highlighted that the debt accumulation among young individuals is primarily driven by essential expenses rather than discretionary spending. This trend signals economic fragility, as it indicates struggles in meeting basic living costs.
The accessibility and allure of buy now, pay later options from platforms like Klarna, Affirm, and PayPal are identified as potential red flags by experts. The ease of using these services compared to traditional credit cards or payday loans can lead to fragmented debt management, making it challenging for individuals to stay on top of multiple payment obligations.
Rebecca Oakes, the vice president of research at Equifax, pointed out that individuals under 30, especially those with credit cards, have experienced a notable increase in average balances and missed payments. Equifax’s data reveals a concerning trend of rising delinquency rates among younger consumers, indicating a struggle to navigate economic fluctuations effectively.
While the younger generation has lower missed payment rates and lower balances compared to older demographics, the persistence of missed payments remains a significant issue. It is crucial for young individuals to address financial challenges promptly to prevent long-term credit repercussions.
Despite the financial hardships faced by young adults, Kalinowski emphasized the importance of seeking help early and proactively addressing debt issues. Taking timely action can lead to effective solutions and pave the way for a more stable financial future.