The Bank of Canada ‘s benchmark interest rate has remained at 2.75 per cent since March 12, but the stability hasn’t given young Canadians much relief when it comes to their bills.

Canadians aged 18–34 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).

“A steady interest rate doesn’t undo years of financial strain,” CCS chief executive Peta Wales said

in a news release. “Many young Canadians are already deep in debt. They’re borrowing small amounts just to cover essentials, and over time, those borrowing decisions stack up.”

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.

“The sheer volume of people in their 20s and 30s we’re hearing from speaks to how much financial pressure they are feeling from their mounting debt,” said Isaiah Chan, a vice president at CCS. “They’re doing what they can — working, budgeting, cutting back — but it’s not enough to offset today’s cost of living.”

While young Canadians struggle with overall debt, mortgage debt appears to be on the decline. A recent report from TD Economics shows that mortgage balances among Canadians under age 35 has dropped, while those of all other age groups have risen.

There are several possible explanations, the report said, including younger Canadians opting for less expensive homes when entering the

housing market or downsizing due to cost pressures. 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’t show a spike in new investment properties or renovations, meaning the debt is is attributable to something else.

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.

Those struggling to pay down their debt may have to wait for some help as

economists said last week that any movement on rates in September is unlikely, though it’s unclear what might happen with the other two rate announcements in 2025.

CCS is urging anyone feeling overwhelmed with debt to reach out for professional help.

“You don’t need to hit rock bottom to get help,” Chan said. “If you’re unsure what to prioritize, how to juggle payments, or even what solutions are available to you, that’s exactly when to talk to someone. You don’t have to figure it out alone.”

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The latest trade numbers shows that U.S. tariffs are taking a toll on exporters, particularly in the steel, aluminum and automobile industries.

Statistics Canada data released Tuesday shows Canada’s trade deficit ballooned to $5.9 billion in June,

from $5.5 billion in May. “Canada’s deficit in goods trade was little changed in June, albeit with plenty of moving pieces in the detail due to U.S. tariff policy,” Andrew Grantham, an economist with CIBC Capital Markets, said in a note.

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.

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      Read more here. Regulators are warning consumers to be careful about taking financial advice from online influencers or so-called “finfluencers.” 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.

      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 wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

      McLister on mortgages

      Find out more Want to learn more about mortgages? Mortgage strategist Robert McLister’s

      Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his

      Financial Post on YouTube

      mortgage rate page for Canada’s lowest national mortgage rates, updated daily. Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

      Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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      • Why the Bank of Canada could still cut interest rates — eventually
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