In a recent Globe and Mail article by Erica Alini, citing new data from Equifax’s Q1 2025 Consumer Credit Trends report, the number of people defaulting on credit cards and lines of credit has surged to levels not seen since the fallout from the 2008 financial crisis.
This trend signals something deeper than just missed bills. It reflects a growing strain on households trying to keep up with rising costs, interest rates, and day-to-day life. But understanding what’s driving this increase and knowing there are steps you can take can help you stay grounded and begin to regain control.
What’s Happening?
For many Canadians, financial stress is no longer just about “tight budgets”—it’s becoming a bigger challenge to manage. Payment defaults on credit cards, car loans, and other unsecured debt are also on the rise.
In fact, credit reporting agencies are seeing default rates grow faster than at any point since the 2008 financial crisis. At Faber, we’ve seen this growing strain firsthand as more people reach out for support.
Several factors are converging:
- Higher interest rates mean even minimum payments are getting harder to manage.
- Inflation continues to push up the cost of everything from groceries to gas.
- Pandemic-era savings have dried up, leaving little room for error.
- Wage growth isn’t keeping pace with rising expenses.
Even those who have never missed a payment before are now finding themselves overwhelmed by balances that feel impossible to chip away at. But support is available, and you’re not alone in facing it.
It’s Not Just the Numbers
Falling behind on payments can trigger a domino effect. Late fees add up, interest compounds, and your credit score takes a hit, making it harder to qualify for future credit or even rent a home.
But the emotional toll can be just as heavy. Many people describe feelings of shame, fear, and isolation, especially when they’ve always seen themselves as “good with money.”
Here’s the truth: debt stress is a growing common challenge. But remember, there’s no shame in needing help and you don’t have to face it alone. Talking to someone who understands can be the most relieving first step.
What You Can Do If You’re Behind
If you’re missing payments—or starting to worry that you might—it’s important to act early. The sooner you face the situation, the more options you’ll have.
Here are a few steps to consider:
- Clarify what you owe: Gather your credit card statements, loan balances, and interest rates. Facing the numbers can be tough, but organizing your debts gives you power and clarity.
- Prioritize necessities: Make sure you’re covering essentials like housing, food, and utilities first.
- Look at your budget with fresh eyes: There may be expenses you can cut or reduce, even temporarily. You might be surprised at how small adjustments can free up room for progress.
- Know when to ask for help: If debt is growing faster than you can manage, or you’re only able to make minimum payments, we’re here to help. Reach out today.
The Faber Advantage
When debt feels like it’s taking over, the most powerful thing you can do is take that first small step. We’re here to listen, guide, and help you move forward with expertise and solutions tailored to your needs.
At Faber, we help people every day who are navigating financial stress. People who are working hard, doing their best, and just need a reset. You don’t have to wait until things get worse to reach out.
This blog references an article from Erica Alini, “Canadians missing more payments, as one default rate reaches crisis-era level,” The Globe and Mail, May 27, 2025. https://www.theglobeandmail.com/investing/personal-finance/article-mortgage-credit-card-debt-payments/
