More than one-quarter of Canadians expect to struggle with bill payments in 2025, and 22 percent anticipate incurring additional credit debt, a recent survey has found.
It found that 43 percent of those surveyed expected they would be applying for a new credit card in 2025.
Generation Z, those between 18 and 26 years old, had the highest number who said they would apply for new credit or refinance existing credit in the next year, at 40 percent. Thirty-four percent of Millennials, or those between 27 years and 42 years of age, said they would be looking for more credit or to refinance this year.
That number dropped to 21 percent for Generation X, ages 43 to 58, and 11 percent for Baby Boomers, those 59 and older.
In the report, 17 percent said they expected to take out a new loan in 2025.
A majority of those surveyed (86 percent) said they believed it was important to have access to credit and lending products to achieve their financial goals.
Canadians are also struggling to keep up with their bills in the new year. Millennials said they were “most concerned” about their ability to make payments. Thirty-five percent said they are not able to pay at least one bill or loan in full, compared to 26 percent of total Canadians.
Millennials also represent more than a quarter of consumers by age group in the credit market, the survey said, with 27 percent having credit accounts. It is the first time this age group has surpassed Baby Boomers, those aged 59 and older, for the amount of credit held.
TransUnion said that those 27 to 42 years of age, the Millennial generation, have the “largest share of debt” at $911 billion or 38 percent of all Canadian debt.
The survey also found that nearly half of the participants (49 percent) expressed concern about being able to pay off loans, mortgages or credit due to interest rates.
“While economic indicators show that consumers are likely to enjoy some relief from their financial pressures in 2025, many are still navigating the challenges caused by the highest interest rates since 2001 we recently experienced,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada.
When it comes to debt and the generation divide, 45 percent of total household debt is held by Millennial and Gen Z consumers, TransUnion said. Jointly, they hold $1.1 trillion in outstanding balances.
Even as Canadians anticipate turning to more credit products this year, not many are looking for a mortgage, according to the survey.
Of those surveyed, 76 percent said they were not likely to buy a home in the next 12 months. That is up from 72 percent a year earlier.
Housing prices have 57 percent of Canadians concerned; however, 14 percent said they intend to take on a new mortgage in the next 12 months. Another 15 percent said they were looking at refinancing their property.
- Dining out (84 percent)
- Clothing and accessories (59 percent)
- Food delivery / ordering in (58 percent)
- Entertainment and media (50 percent)
- Large purchases (furniture, appliances, cars, etc.) (47 percent)
- Travel (48 percent)
- Home improvement (33 percent)
- Electronics (30 percent)
- Toys and hobbies (28 percent)
