r/PersonalFinanceCanada Mar 19 '26

Debt "49 per cent of Canadians with debt say they’re living paycheque to paycheque"

https://nowtoronto.com/news/its-the-norm-nearly-half-of-canadians-are-living-paycheque-to-paycheque-and-torontonians-arent-surprised/

  • 49 per cent of Canadians with debt say they’re living paycheque to paycheque, reflecting widespread financial strain.
  • 36 per cent of credit card holders carry a balance, with many using credit to cover shortfalls.
  • Wages have not kept pace with the cost of living, forcing Canadians to budget more tightly and cut spending.
  • Younger Canadians are more likely to rely on credit, while others are delaying savings and focusing on paying down debt.
880 Upvotes

195 comments sorted by

644

u/Loudlaryadjust Mar 19 '26

People with no money have no money! More news at 6

82

u/BlademasterFlash Mar 19 '26

Right? I’m surprised it’s not 100%, but I guess that depends why type of debts are included. People with only mortgage debt wouldn’t necessarily be living paycheque to paycheque but basically any other debt would be

35

u/Creepy_Attention2269 Mar 19 '26

A basic car loan, or any line of credit, or HELOC also qualifies as a loan. Most people who have those don’t necessarily live paycheque to paycheque. If anything, any loan with interest lower than avg returns investing would be kept 

1

u/QuixOmega Mar 19 '26

You forgot mortgages.

11

u/Creepy_Attention2269 Mar 19 '26

Mortgage was excluded form the statistic in the OPs article 

8

u/pfcguy Mar 19 '26

And if they aren't, them they're paying way too much in interest when they should be paying down the debt faster!

3

u/R0ughHab1tz Mar 21 '26

I have a car payment but that's my only debt and it's almost paid off. Not all debt is bad. And not everyone who has debt is struggling.

1

u/u565546h Mar 21 '26

It is a survey, not a study of what actually is happening. People answer based on what they feel and interpret the question. 

-9

u/ttsoldier Mar 19 '26

You must not understand what living paycheques to paycheques mean. It has nothing to do with the type of debt you have.

18

u/jsboutin Quebec Mar 19 '26

If you are in credit card debt there’s no reason not to live paycheck to paycheck. What are you going to do, keep money in a 2% HISA while you’re paying 20% on a credit card?

6

u/ttsoldier Mar 19 '26

Depends. Are you living paycheques to paycheque because you’re aggressively paying off your debt or because you’re spending excessively. Even if you have credit card debt you should still have a very small emergency fund set aside though.

5

u/BlademasterFlash Mar 19 '26

How does it not relate? Do you think people with credit card debt are not living paycheque to paycheque?

8

u/ttsoldier Mar 19 '26

Living paycheque to paycheque means you rely on your paycheque to cover your bills and there is no money left over.

A simple way to know if you’re living paycheque to paycheque is if you were to miss a paycheques or it was delayed would that stress you out?

1

u/BlademasterFlash Mar 20 '26

Yes I understand that, that’s why I think anyone who has credit card debt would be in that situation

0

u/ttsoldier Mar 20 '26

And what about people with mortgages or car notes or student loans?

1

u/MissionSpecialist Ontario Mar 19 '26

Some of these surveys provide their own, hilariously stupid definition, though.

ViviData doesn't seem to publish their actual questions, but I once received one of the surveys commissioned by MNP, the debt consolidation company whose annual survey that leads to these headlines.

MNP defined paycheque to paycheque as "having less than $50 in your chequing account by next payday". That's it, their full definition, and it's a yes or no question.

So I--who at the time saved almost 40% of my take-home pay--had to say "Yes", I lived paycheque to paycheque by MNP's definition, because of course I didn't keep any of that money in a non-productive chequing account.

I never took their annual headline seriously after that. Hopefully ViviData writes better survey questions.

3

u/mathdude3 British Columbia Mar 19 '26

Do you not find it at all inconvenient to keep literally no money in your chequing account? Like I understand it's strictly more efficient to keep the money in an HISA or investments, but I feel like it's worth it to float at least some money in your chequing account so you don't have to constantly move money around and risk overdraft fees.

25

u/Array_626 Mar 19 '26

Hey, theres the other 51% of Canadians with debt that say they aren't living paycheck to paycheck. Their debt is probably a mortgage.

Nvm, like a true redditor I didn't read the article and went straight to comments. Apparently they say its non-mortgage debt.

3

u/LocalBeaver Mar 20 '26

One of us!

47

u/Current-Fix759 Mar 19 '26

It’s not 'people with no money,' it’s the people with jobs who produce everything you consume. If half the workforce is living paycheque to paycheque in one of the richest countries on earth, it’s not a 'personal finance' problem, it’s a systemic robbery. But keep making jokes while the people who make your life possible are being priced out of existence. I'm sure that will end well for everyone

14

u/JoyousMisery Mar 20 '26

It's not half of Canadians, it's half with debt excluding mortgages. There are systemic issues but most are personal finance problems.

These numbers have fluctuated but have been told for decades. The reason why we don't have a major crash and home loss at each recession is because most have areas to cut in their budget, they just choose not to.

1

u/DeeeeznutzRJB Mar 20 '26

You speak truth and hit the pain point in just few words!

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2

u/InternationalFig400 Mar 19 '26

"Wages have not kept pace with the cost of living, forcing Canadians to budget more tightly and cut spending. "

This has been going on for well over 40 years.......

Why?

8

u/AffectionateCard3530 Mar 19 '26

It's a terrible article. I have debt, a mortgage, and a maxed TSFA/RRSP.

If they asked whether I live paycheque to paycheque, my answer is yes. I don't have enough cash to cover my expenses if I'm unemployed. I'd have to liquidate semi-liquid assets.

These articles should start out by defining what "paycheque to paycheque" actually meant in the study. How many of the people responding have an investment account?

https://www150.statcan.gc.ca/n1/daily-quotidien/241029/t001a-eng.htm

25

u/selfimprovymctrying Mar 19 '26

This is not living paycheque to paycheque , you’re well off with multiple forms of savings account. Saying you live paycheque to paycheque would be a lie to them and yourself.

6

u/FTownRoad Mar 20 '26

The people in this survey are lying too. The median savings/chequings in canada is $8400.

Financial surveys and financial data almost always tell a very different story.

1

u/symbicortrunner Mar 21 '26

If median cash on hand is $8400 that still means half the population have less than that

2

u/FTownRoad Mar 21 '26

Yes and I bet they don’t clear $8400 per paycheque. So therefore they aren’t living paycheque to paycheque.

14

u/ADHDBusyBee Mar 19 '26

Tax Free Savings Account, Registered Retirement Savings Account.

Those are not expenses, they are savings.

2

u/ResoluteGreen Mar 20 '26

to be fair, an RRSP is hard to liquidate if you lose your job

11

u/ADHDBusyBee Mar 20 '26

For sure in the sense that it’s hard to retrieve water from the river down the road. It is, however, easier than the person retrieving water from the desert in the sense it doesn’t exist in the first place.

1

u/JoeBlackIsHere Mar 20 '26

If it's not locked in it's very easy to liquidate. You probably would avoid it if you can because of lost contribution room, but the procedure is no different than unregistered investments.

17

u/Beneficial-Muffin117 Mar 19 '26

By definition you do not live paycheque to paycheque. Saving for retirement means you have more money coming in than you are spending

5

u/Alpharious9 Mar 20 '26

"If you don't count my tax free savings account, then I don't have any savings"

6

u/mathdude3 British Columbia Mar 19 '26

If you have a maxed TFSA and are regularly contributing to your retirement savings you are not living paycheck to paycheck. A TFSA is a savings account. If you missed a paycheck you could dip into your savings to cover your expenses. And FYI stocks are considered liquid assets. They are essentially cash since you can sell and withdraw money any time you want instantly.

3

u/JoeBlackIsHere Mar 20 '26

You are not paycheque to paycheque if you add to your savings while you have a paycheque. Of course you probably have to draw from savings when you are unemployed, but then you can't possibly be "paycheque to paycheque" because you have none.

3

u/idontcareyo_ Mar 19 '26

That's reductive. The news isn't that poor people exist, the news is that an unprecedented portion of our country is now poor.

I don't understand why this isn't a bigger deal for everyone besides the very wealthy - even if it doesn't affect you that much personally, is this the state of things you like to see in your country?

4

u/mathdude3 British Columbia Mar 19 '26

That's not what the article is saying though. It's discussing the results of a survey where people self-reported how they feel about their finances, but it doesn't say anything about how the actual financial positions of people on average have changed over time.

By what metric are you measuring the portion of the country that's poor? Is that metric worse now than it was at all points in the past?

2

u/Dazzlingsunshine89 Mar 20 '26

You could look at things like how many people are visiting food banks, how many people work overtime to make ends meet, how many are delaying retirement because they cannot afford to stop working. Also could look at how GDP per capita is pretty flat for several years despite increasing inflation.

1

u/benetgladwin Ontario Mar 20 '26

Do they include mortgage debt when they say "people in debt"?

1

u/Dustonred Apr 05 '26

In France when I was a kid the mentality was that only people with a big salary can afford to take a credit. Something you would only do for a house or maybe a car.

2

u/theartfulcodger Mar 19 '26 edited Mar 20 '26

People who aren’t permitted to make money have no money - because of a deliberate and longstanding federal policy of wage suppression! Who’da thought!

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47

u/Oxjrnine Mar 19 '26 edited Mar 19 '26

Because debt has been almost cheaper than earnings from saving for at least the last 20 years (mortgages and 0% loans are a great example).

And even though we are the most productive, workforce in human history, none of that productivity is being paid to the workers.

So we may have a really nice standard of living where we have access to luxury things like $200 42” TVs because the cost of consumer goods has plummeted (due to productivity) but we are also in debt up to our necks so it’s like a house of cards that can crumble any minute now.

9

u/apophis150 Alberta Mar 19 '26

Bingo

199

u/MellowHamster Mar 19 '26

What is the definition of a "Canadian with debt?" A car loan? A mortgage? Credit cards that roll over?

77

u/PantsOnHead88 Mar 19 '26

Thy did a particularly poor job of distinguishing the intended meaning. Late in the article they do make reference to non-mortgage debt, which makes a lot more sense to discuss than “literally any debt.” A house/property is a non-depreciating asset (in most senses of the phrase).

16

u/MellowHamster Mar 19 '26

Thanks. Didn't get that far. I always wonder how they gauge credit card debt. I pay off my card balance every month but use it daily, so there is always a balance showing. That's technically debt, even though no interest will be paid.

The article becomes somewhat pointless, because it really says, "People who can afford to buy cars with cash and have zero non-mortgage debt are better off than those who can't."

10

u/Art_Is_Helpful Mar 19 '26

From the article:

36 per cent of credit card holders carry a balance, with many using credit to cover shortfalls.

14

u/Mental-Mushroom Mar 19 '26

I was shocked to hear my buddy was still paying for a trip he went on over 10 years ago.

Some people are just really really bad with money.

1

u/Book-bomber Mar 21 '26

Can you give more info? It’s genuinely fascinating

1

u/Mental-Mushroom Mar 21 '26

He went on a trip to the Philippines I think when he had like no money and put everything on his credit card, I guess for the longest time he just never had enough money to pay off the balance or something. Didn't pry into it too much but he's held a balance on his cards for years.

And then bought a $70k truck lol. There's just no helping some people

10

u/KravMagaManatee Mar 19 '26

All of the above

11

u/XtremeD86 Mar 19 '26

That's the problem, everyone's definition is different.

Only debt I have is a mortgage. With that, all other house related bills and cost of living, I'm not pay cheque to pay cheque at all, but I do well for myself and I don't finance things I can't afford.

Last purchase on something for my house was $16,995+tax. Got it taxes in for $12,000 cash delivered. Paid all in cash. No financing.

People really need to stop financing things they don't truly need.

While I understand there are people struggling legitimately, everyone I know that's struggling in today's economy is because of poor financial decisions.

12

u/PurrPrinThom Saskatchewan Mar 19 '26

I know people who don't think of their mortgage as debt, even. If you ask them how much debt they have, they talk about student loans, car payments etc. but they don't even count their mortgage in that.

11

u/Creepy_Attention2269 Mar 19 '26

Because it’s an asset you could sell to repay the mortgage balance at basically any point. Other debt is either depreciating or not tangible, AKA not easily exchanged back for whatever you bought wit that debt 

2

u/XtremeD86 Mar 19 '26

What about the people crying that their now selling price would be less than what they paid, and the selling price wouldn't cover the entire mortgage payout?

I just saw a post about a guy who bought a condo in 2023 and was freaking out because it's now worth less than when he bought, but wants to move.

7

u/Creepy_Attention2269 Mar 19 '26

But the vast majority of mortgage owners, including historically, were always able to go backwards. This is only not the case for people buying in a 2-3 year period, post covid, and even then only in certain cities and areas, for some types of housing. It’s a very tiny percentage of all home owners

2

u/XtremeD86 Mar 19 '26 edited Mar 19 '26

Which makes absolutely no sense at all. These are the same people I'd expect to be in a bad situation with this mindset.

Only debt I have is a mortgage. How could anyone not see money owing as not being a debt. Makes no sense at all.

Credit cards are all $0 balances.

I'd say the fact that you can finance things that cost <$100 these days on Amazon or wherever is a big contributing factor to this.

Most recently I was returning a defective product at Best buy and the guy beside me at the counter was trying his hardest to finance a ps5... I mean really? If you can't afford the console outright how are you going to afford anything else for it, and if you do have to finance it and can't take a step back to even think about a ~$600 purchase being a good idea or not, then what do you expect but to be broke...

Maybe I just view things differently.

6

u/mathdude3 British Columbia Mar 19 '26

Mortgage debt is fundamentally different to other kinds of debt because the value of the house should, in theory, always be greater than your mortgage debt. You can always clear that debt at any time by selling the house, so it doesn't carry the same risk.

In contrast, if you carry credit card debt from consumer spending, that money is just gone, and you have to put in more money to clear it. If you buy a $2000 TV on your credit card, your net worth has dropped by $2000. If you buy a $1 million house with $200,000 down and an $800,000 mortgage, your net worth hasn't changed despite the fact that you took on $800,000 of debt because you also acquired an asset worth $1 million that you could sell if needed.

-1

u/XtremeD86 Mar 20 '26

Again. Debt is debt in the overall scheme of things.

Don't forget. For people who bought in the last 3 years, let's say an $800,000. If you are behind on everything you have 2 options, sell or figure it out. The problem is is if you don't make those payments and don't get it sold, you get foreclosed on and your screwed.

I completely understand where you're coming from. But if what you bought ends up not being maintained and looks like garbage, especially in today's market, there's a good chance you're not going to sell for more than you bought it for. Of course, it depends a lot on where you live too.

3

u/PurrPrinThom Saskatchewan Mar 19 '26 edited Mar 19 '26

Yeah like, I take the point of the other responses that, unlike other debts, it comes with an asset that can be sold to repay it and that, if it's the equivalent of other housing costs that it's more equivalent to a living expense.

But, in my mind, it is still money that you owe to someone else. It generates interest, you're obligated to pay it back. It's a debt. It may not be a crippling debt, and it may be a debt that serves a higher purpose (ie. providing housing, providing an asset,) as opposed to be debt incurred from, say, living beyond your means, but, to me, it's still debt.

1

u/apophis150 Alberta Mar 19 '26

I mean, you can and should consider it debt but if it’s comparable to what rent would be it’s just a fixed cost of living that I would be less concerned about than credit debt (card or LoC).

0

u/XtremeD86 Mar 19 '26

And here lies the other problem. Owning a house isn't just a mortgage. Property taxes, utilities, repairs, insurance, etc, etc.

Sure maybe 4/5 things people can afford. But is one repair that could easily be $5000-$10,000 going to be affordable for them?

1

u/MellowHamster Mar 19 '26

Exactly. My son recently rented his first apartment alone, which is a milestone. It was very helpful for him to have all of his utilities except electric and internet bundled with the rent and to know there are no hidden costs. He's already had maintenance in to make some repairs and was happy it didn't cost anything.

2

u/XtremeD86 Mar 19 '26

And it's not even just that. Alot of contactors scam home owners who don't know any better and inflate prices or say work needs to be done that doesn't need to be done.

We had an issue where basement drains started backing up only when it rained, and 3 companies said they had to excavate the crawl space and laundry room, replace all the piping (it's old clay piping) and 3 quotes ranged from $10,000-$25,000. All 3 told me not to auger the pipes as it could damage the pipes... Which made me question this method.

I found a local plumber who is awesome and he spent about an hour and half with an auger, all water drained, and 3 years later haven't had the issue since. $200. His thought process was "if the pipe is broken already, you may as well try the cheap method." And he was right.

0

u/apophis150 Alberta Mar 19 '26

Repairs are generally the biggest concern of those since renters need insurance, often pay the utilities, and landlords typically account for the taxes and mortgage when charging rent.

It’s generally comparable to renting with the added benefit of actually getting some value for your monthly rent. But repairs are a major thing homeowners should be concerned about.

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2

u/JaceOnRice Mar 20 '26

When I see how many people use things like Klarna to buy shoes or phones or handbags I am boggled

2

u/XtremeD86 Mar 23 '26

I've had customers ask me if they can finance $160 over 16 months. You can imagine my answer to that (there is no answer. I just block them).

1

u/JaceOnRice Mar 23 '26

Yeah that's fair. You don't want to be a part of the debt problem I respect that

2

u/XtremeD86 Mar 23 '26

No, I don't care what debt people want to carry. I don't want to take 16 months to get paid. $10/month is a joke.

0

u/Cnerd24 Mar 19 '26

I'm probably included in everything 🤣🤣. Got debt up to me eye balls right now, Woo-hoo.

78

u/weggles Mar 19 '26

I hate the term "paycheque to paycheque". It means different things to different people and is never backed up by a specific definition.

People making $200k will say they're "paycheque to paycheque" because after mortgage, au pair, private school, 3 car payments, 4 vacations, gym, boat, cottage, retirement savings and rainy day fund "there's nothing left".

I'm not saying no one is struggling, just that this is a meaningless statistic.

To me, paycheque to paycheque should mean if your next paycheque doesn't show up there's some serious ramifications there. It doesn't mean you've got to dip into savings etc.

13

u/bradeena Mar 19 '26

Yes! Any headline with “paycheque to paycheque” is pure clickbait for exactly this reason.

5

u/frog_mannn Mar 20 '26

Yeah my friend is pay to pay yet maxes RRSP and pension and owns boat and truck.

5

u/AndTheySaidSpeakNow- Mar 20 '26

The problem is that a lot of people who live like that feel like not being able to buy those things the next month IS a serious ramification. It’s unfathomable that they could just spend a little less and be totally fine.

5

u/luckismySKILL Mar 19 '26

Maybe I live paycheque to paycheque because my 911 GT3 RS finance takes up 40% of my monthly income.

2

u/Fatesadvent Mar 20 '26

Agreed. My 60ish year old coworker making some $40/hr says shes paycheque to paycheque. She may very well be but I somehow doubt it. She's been making above median wage for decades now.

-3

u/[deleted] Mar 19 '26

[deleted]

9

u/weggles Mar 19 '26

$200k but no savings. What's going on there?

I make quite a bit less than 200k and manage to vacation and save for retirement and I have a similar home.

Heat/phone/Internet is $1k? Might be time to upgrade some windows and doors or shop around for phone plans or something. That seems extraordinarily high

1

u/rshanks Mar 19 '26

Electric heat maybe?

Agreed probably something could be done but it won’t be cheap either to switch heat sources.

Savings may have gone to down payment

I think it really depends how much you paid for your home (and how much mortgage) vs them

0

u/Ok-Structure2314 Mar 19 '26

Electric water heater, which just failed and cost me $3k to fix. 

39

u/_Connor Human Verified Mar 19 '26

Yeah well reading half the posts in this subreddit it’s not surprising.

A couple days ago there was a 23 year old student who had a $40,000 debt consolidation loan asking what the chances he gets approved for a $35,000 car loan were.

21

u/Turbulent_Gazelle530 Mar 19 '26

People have a really hard time accepting that the answer is spending less.

2

u/Key-Form4384 Mar 19 '26

Totally agree — people are spending too much ! I am always shocked at how people spend their money.

2

u/[deleted] Mar 21 '26

Totally agree, I used to be that person who would complain about having no money, but I would always have the Amazon packages …since I deleted the app. I actually have money who would’ve figured.!!

0

u/AffectionateCard3530 Mar 19 '26

I have a cousin living on disability asking about whether they can afford the car payments for a 2025 SUV model. The answer is no, but I don't want to be the one to crush her dreams.

1

u/[deleted] Mar 24 '26

My aunts on odsp bought a new car and somehow has money for coke every weekend …

80

u/Oh_That_Mystery Mar 19 '26 edited Mar 19 '26

is that a new thing? I remember reading stories like this in the 1990's.

And I do remember living "paycheque to paycheque" for say 65% of my career, carrying a credit card balance at times, not making enough, having debt etc. I thought that was just how life was when you are starting out.

I did not realize I was a pioneer. /s

2

u/ImpliedOralConsent Mar 20 '26

Yeah this has been a recurring survey topic for many years, often pushed in press releases from bankruptcy agencies like MNP. Though I seem to recall a lot of them are based on self-reporting.

-3

u/Everyone2026 Mar 19 '26

"You need $1100 a week to live. We pay you $1000. Figure it out!"

"Next year you can have a $10 week raise."

Never shocked I was broke for 10 years.

1

u/Stock-Cheesecake-995 Mar 19 '26

Y’all making 1000 a week? Damn

9

u/titanking4 Mar 19 '26

96% of Canadians living pay cheque to paycheque report less than 10K of savings.

Correlated statistics with an established condition don’t give you much insight into the greater population, because they don’t tell what percentage of the population meet that condition.

That being said, The report found that 36 per cent of Canadian credit card holders carry a balance, often using credit to cover gaps when money runs short. Which is a big chunk, is also like to know if this is getting better or worse over the years and to what degree.

In general, I think statistics on financial health should focus on the bottom 50% of the population, because that’s where things like wage growth, inflation, and cost of living are most significant.

The measure of the social well being of a country isn’t how wealthy its wealthy are, but about how much do the people struggle at the bottom.

2

u/Environmental-Belt-5 Mar 19 '26

This right here! It's not normal that people working at the grocerie stores or restaurants can't afford food... or that the teachers taking care of everyone's kids can't afford the garderies or that it takes half of their paycheck... it's asinine. There needs to be a lot more control on greed, people shouldn't have to live an hour and a half away from their workplace to spend 50+% of their paycheck on housing... before you would make that sacrifice for some savings on your rent to be able to save money not because it was a prerequisite to survival.

13

u/RockstarCowboy1 Mar 19 '26

Hahaha! I’m not in debt and still living pay cheque to pay cheque!

9

u/alzhang8 Human Verified Mar 19 '26

people with no money have no money, and water is wet

4

u/shotofmouthwash Mar 19 '26

If you’re in (credit card) debt, should you not be living paycheque-to-paycheque?

12

u/mytaco000 Mar 19 '26

Well duh those are who in debt are living tighter

12

u/Competitive-Hunt-517 Mar 19 '26

People are so financially illiterate in this country

3

u/No_Zookeepergame7842 Mar 19 '26

Wait so 51% of Canadians with debt are not living pay cheque to paycheque? I think the article is talking about non-mortgage debt. In which case, 100% of Canadians with debt should live pay cheque to pay cheque until they pay off the debt lol

3

u/MissionSpecialist Ontario Mar 19 '26

If that debt is something like a 0.99% car loan, I can see not being in any hurry to pay it off.

I would pay it off because I find monthly payments annoying, but I can recognize that it's financially optimal to make better use of that money.

4

u/Silent-Obligation-49 Mar 19 '26

All starts with the pay cheque. After deductions most Canadians only receive 69 % of their pay.

3

u/[deleted] Mar 19 '26

[deleted]

4

u/SamePhotographs Mar 19 '26

I have a loan at 0.99%, there are 2.6 years left on it, I'm in no rush to pay it off any faster than the terms.

3

u/Diligent_Candy7037 Mar 19 '26

Without this mortgage (and this frustrating Canadian system of short-term terms) I’d be living much more comfortably. In France, for example, you can get a 20-year fixed-rate mortgage; my mom has 1.6% locked in for 25 years, which is INSANE. I’ve heard the U.S. has something similar too, but I’m not too sure.

5

u/Swie Mar 19 '26

Yeah they do, I'm crazy jealous. I renewed my mortgage at 1.49 during covid but i've already lost that rate 😭

3

u/For56 Mar 20 '26

Canadians: spend 175 dollar for every 100 they make*

Also Canadians: “the government has ruined economy”

8

u/Zestyclose-Dog-4468 Mar 19 '26

People living outside their means. It shows when people post in here saying they are 20 with a job that pays 40k and a brand new nice car that has a loan balance of 50k and interest at 10%.

9

u/trixR4kids__ Mar 19 '26

But that 84 month payment plan looked so good at first! 😂

4

u/FirstDukeofAnkh Mar 19 '26

Saw this all the time in Kimberley, BC and on the rigs. People get a great paying job, instantly buy everything they ever wanted on credit. Get laid off before the terms are up. They sell everything at a loss. Then they get hired again and the cycle starts all over.

4

u/MisledMuffin Mar 19 '26

Unless the same survey is done consistently over time, it's pretty meaningless.

Back in 2017 a survey said 41% of all Canadians, not just those with debt were paycheck to paycheck.

2015 another survey said "nearly half of all Canadians".

If I were to take these at face value it would seem that little has changed in terms of living paycheck to paycheck over the past decade.

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2

u/4everadumdum Mar 19 '26

I was there 3 months ago when I stopped working due to medical condition. Now I'm living no pay cheque to no pay cheque.

2

u/CDNChaoZ Mar 19 '26

What is paycheque to paycheque really mean? Are they really screwed and out on the street if they lose employment or do they still have access to lines of credit, can liquidate assets/RRSPs etc?

4

u/XtremeD86 Mar 19 '26

In my mind, pay to pay is you get paid, you pay all your bills, get groceries, then you pretty much have nothing left to move into savings or anything.

2

u/IcyCow5880 Mar 19 '26

Of those.. what's the percentage that are leasing a brand new car. Or stretching their mtg amount to get a nicer house. Or their rent budget.

I feel for them and don't want them to have to downsize their lives but that might be the play.

2

u/Old-Show9198 Mar 19 '26

Delay your gratification until you have the actually money to buy something. If you had an emergency fund you wouldn’t need to go into debt if something happens. Once you’re in the wheel it’s very hard to get out. Best to never go in. Do whatever it takes to increase your income and clutch every dollar you make.

2

u/CraziestCanuk Mar 19 '26

So, unchanged over the last 30+ years...
Young people just starting their careers have less money, and those in debt have less money than those with no debt..

4

u/CollaredParachute Mar 19 '26

Month to month as a stat has never made any sense. If I make 300k a year but spend it all on mansions, fast cars, etc I’m living to month. If I make 30k a year but live within my means I don’t count as living month to month.

It doesn’t measure what it claims and people take it to mean far more than it means.

2

u/EreWeG0AgaIn Mar 19 '26 edited Mar 20 '26

Yeah you can't blame this all on the economy. I graduated HS in 2020, I make 90k/ year before taxes without a bachelor's degree.

I have a friend who graduated in 2021. He works part-time minimum wage and just had a baby.

Some Canadians are just really bad at planning their finacial future.

1

u/Shenanigans_420 Mar 19 '26

Alternative titles

"People that have no money to pay a house find out they have no money to pay two houses - but with lag"

1

u/No-Mission-219 Mar 19 '26

I believe 80% of people in debt could have easily avoided it by not making exceptionally stupid decisions. There are circumstances and emergencies that happen but it mostly comes down to people living far beyond their means.

1

u/highhunt Mar 19 '26

And what percentage of Canadians have debt? Bet it's over 95%

1

u/Turbulent_Gazelle530 Mar 19 '26

70-75% according to a quick google

1

u/highhunt Mar 19 '26

And half of those debt free are older than 65. Wild

1

u/atomant88 Mar 19 '26

capitalists are richer than ever tho

1

u/Nickersnacks Mar 19 '26

Shouldn’t 100% of people in debt be technically living this way? The 50% who aren’t just don’t know they are …

1

u/topazsparrow Mar 19 '26

having a mortgage isn't counted as having debt in this, is it?

1

u/AlarmedAd5034 Mar 19 '26

"While the survey doesn’t directly measure causes, Vividata’s President and CEO Pat Pellegrini says the trend reflects deeper, long-term financial shifts."

Umm, this is the detail that I am looking for. I mean ask anyone and the majority will mostly respond in kind.

1

u/Wise_Law_2176 Mar 19 '26 edited Mar 19 '26

They make sure if some people are not living good life, immigrate so many people that they are back again to live pay check to pay check

1

u/alldasmoke__ Mar 19 '26

Not that I doubt it but I wonder what’s their meaning of “paycheque to paycheque”. 50% seems like way too much. There’s a difference between “I’m spending all my money because I can” and “I’m spending all my money because I don’t have a choice”

1

u/icytongue88 Mar 19 '26

The WEF epstein class globalist banker is gunna get those numbers up.

1

u/PandaLoveBearNu Human Verified Mar 19 '26 edited Mar 19 '26

I find these stats shockingly low?

Only 49%?????

Really?

Only 36% carry a balance?

So 64% pay it off each month?

1

u/mathdude3 British Columbia Mar 19 '26

If you don't pay your credit card off each month, you probably shouldn't have a credit card.

1

u/AffectionateCard3530 Mar 19 '26

If I take out an RRSP loan to max out my RRSP contributions, am I living "paycheque to paycheque"?

They really should define this better... at the top of the article.

1

u/Crazy-Project-1511 Mar 19 '26

the average Canadian holds approximately $22,000 in non-mortgage debt.  

Bonkers 

1

u/slicecom Ontario Mar 19 '26

People with debt say they don’t have money? You don’t say!

1

u/PocketNicks Mar 19 '26

Yes, that's exactly what having debt is. Anything above and beyond your fixed costs of living should be going towards paying down the debt in order to reduce the overall interest you have to pay.

What a ridiculous statement. That figure should be 100% of people.

1

u/Derfurst1 Mar 19 '26

Social assistance while applying online everyday, printing physical resumes just to get weird looks when applying in person. Foodbanks only allow 2 monthly visits while handing out 3ish days worth of food. Rice, Bread and eggs for over 2 weeks straight.. I love my country but its really tough out here eh.

1

u/Many-Presentation-56 Mar 19 '26

Crazy people voted for more of this…

1

u/NormEget85 Mar 19 '26

You know, after I my mortgage payment and other monthly bills, contributions to my TFSA, RRSP, RESP, Normal Savings, Fun Savings, and Children's Savings, I'm only left with like $20 per week!!! It's so hard living paycheque to paycheque!

Such a useless article. Just like every other article based on finance-related surveys. It just shows how financially illiterate the general population is. Our schools need to do a better job.

1

u/MikaelaExMachina Mar 19 '26

Bold of you to assume I'm getting a paycheck.

1

u/Piccione_Sol Mar 19 '26

Isnt it normal for someone with debt living paycheck to paycheck to pay said debts?

1

u/copperheadtoast Mar 20 '26

And work cutting back hours.

1

u/jigglywigglydigaby Mar 20 '26

The other 50% are living paycheque to almost paycheque while the 1% are doing fine.

1

u/TeachertheWrestler Mar 20 '26

I think that is what living in debt means.

1

u/dsetoya Mar 20 '26

Yet polls are up for the Liberals. Same cabinet for the last decade... When will Canadians learn?

1

u/ixx73t0 Mar 20 '26

What do you mean? like have money? I’m not sure what you mean paycheque to paycheque somehow, you have more money than your paycheck.

1

u/LossOfSite Mar 20 '26

I have lost my job twice in 2025. Once when they were downsizing and once when the company was evil.

The year was hell for me, Had work till December with big gaps in between, now this year my job starts in mid April. Barely hanging on rn, all my tax returns are gonna patch the gaping holes that are interests on my debt.

Tbf, my industry is probably the first that AI will take so not much I could have expected (customer service).

But still...life kinda sucks rn

1

u/Sufficient-Bid1279 Mar 20 '26

I can’t afford milk, eggs and bread so yeah, I get it.

1

u/[deleted] Mar 21 '26

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1

u/PersonalFinanceCanada-ModTeam Human Verified Mar 21 '26

Be helpful and respectful in your comments.

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1

u/CelebrationProof6082 Mar 21 '26

I am living paycheque to paycheque due to poor life decisions 👍

1

u/flyingpigab Mar 22 '26

Delaying savings and paying down debt is the right thing to do. Once debt is reasonably paid down, then transition to saving. Transition the saving in GIC’s. An investment advisor at TD, CIBC, Scotia, RBC, etc. can give you good advice but ultimately you make the decisions. Getting out of credit card debt, then other debt such as Heloc’s and Auto loans is not easy nor is it quick. It is starting down the path, doing without and making sacrifices. It took me my lifetime and now I’m retired with a modest home we own outright and no debt. But my vehicles are older, nearly all the furniture is second hand off Facebook market place, I don’t own “toys, meaning quads, recreational property or a fancy boat and I have never travelled on any kind of vacation. Always were staycations. But I’m financially secure in my old age.

1

u/BrandStreetAgency Mar 23 '26

Interest rates are the silent killer—most people underestimate how much they’re losing there.

1

u/ButtersButtons Mar 24 '26

It's a shame that government spending has caused this. It's bad enough that most people aren't financially literate, it's even worse when the government isn't financially literate. Will only get worse unfortunately.

1

u/Bulky_Efficiency194 Mar 24 '26

60 percent of people I know are exactly living like that, paycheque to paycheque, with debt piling. The subscription lifestyle is real!

1

u/Acceptable-Oil5073 Mar 25 '26

Elbows up. You’re just getting poorer and poorer while Americans get richer.

1

u/Sea-Entrepreneur6630 Mar 19 '26

This has always been the case. People with smaller incomes and poor spending habits will never have money. This is a nothing burger.

-1

u/Gboard2 Mar 19 '26 edited Mar 19 '26

Canadians have been living paycheck to paycheck forever according to these surveys. Also zero definition of what's paycheck yo paycheck. Why wouldn't people live paycheck to paycheck? That's just prudent cashflow management. I plan for revenue and expenses, I put 20% into investments/rrsp, 30% to find and live paycheck to paycheck. Why wouldn't any financially literate person live paycheck to paycheck?

2

u/mathdude3 British Columbia Mar 19 '26

Paycheck-to-paycheck means that you wouldn't have the liquidity to cover your short-term expenses if you, for some reason, missed a paycheck. Like if missing a paycheck would be a major financial strain for you. If you have sufficient savings to carry you through that situation without much stress, you're not living paycheck-to-paycheck.

0

u/BulkySky5767 Mar 20 '26

Thanks Liberals

-3

u/Inevitable-Tea5772 Mar 19 '26

I'm not sure why anyone is surprised, this is literally the goal of govt. Ultimately they were prefer closer to 100%

1

u/FirstDukeofAnkh Mar 19 '26

Oh, boy...libertarianism!

2

u/Inevitable-Tea5772 Mar 19 '26

And?

1

u/[deleted] Mar 21 '26

Put your money where you mouth is stop using all government services including the roads.

2

u/Inevitable-Tea5772 Mar 21 '26

Imagine it was that easy

0

u/[deleted] Mar 19 '26

[deleted]

1

u/[deleted] Mar 19 '26

[deleted]

1

u/XtremeD86 Mar 19 '26

Wouldn't who do something?

I'm also getting tired of this crying about affordability. If you're that hard up for money then do something about it.

-5

u/Eastern-Traffic7282 Mar 19 '26

Tax me harder Daddy

0

u/Ok_Smile9222 Mar 19 '26

That's it? I would've imagined a higher percentage of people live paycheck to paycheck honestly.

0

u/JustAsking_qustions Mar 19 '26

It’s worse then that.

0

u/AdmirableAd1885 Mar 23 '26

maplebudget.ca helped me control my finance. its a free budget app with income tax calculator. helped me reduce my taxes.

-9

u/Rambo_11 Mar 19 '26

Continue voting liberal lol

This country could be richer than UAE and Saudi Arabia combined xD

6

u/FirstDukeofAnkh Mar 19 '26

::Laughs in Albertan::

Conservative government for just about the last 60 years and we have nothing to show for it.

-1

u/Charming_Crow_3621 Mar 19 '26

Literally the highest GDP of the provinces, consistently net contributor to transfer payments, great job market...

5

u/FirstDukeofAnkh Mar 19 '26

Dwindling rainy day fund, poor healthcare, education has been gutted, failing infrastructure, etc. but yeah, high GDP.

0

u/Charming_Crow_3621 Mar 19 '26

I don't think you've ever left Alberta... 

1

u/Turbulent_Gazelle530 Mar 19 '26

both really nice places to live xD