New Study Reveals BC Consumers Struggling to Meet Living Expenses Turning to Debt

Costs of living are now the top cause of problem debt for consumers surveyed in latest BC Consumer Debt Study from Sands & Associates.

Sands & Associates’ 2025 BC Consumer Debt Study polled over 2,300 people across British Columbia who recently made an insolvency filing, offering unique insights into consumer debt issues in the province and the burdens of debt that many consumers face.

Sands & Associates President and Licensed Insolvency Trustee Blair Mantin joined CTV News to discuss key findings from the 2025 BC Consumer Debt Study.

Watch here and learn more below:

Key Numbers from the 2025 BC Consumer Debt Study

• The 2025 BC Consumer Debt Study’s largest cohort (35%) said they had $25,000-$49,999 of debt (excluding vehicle loans/mortgages) when they started their debt relief process.
• Over half of individuals polled (58%) said credit card debt was the main type of debt they had – over 4.5 times more than the next leading type of debt.
  • Payday (or instalment) loans were the second-most reported (12%) type of problem debt for consumers, as well as tax debt (11%).
• 72% of people surveyed said overwhelming stress was how they knew their debts were becoming a problem.

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– Lisa Tondu

Sands & Associates greatly helped me with my credit card debt by showing me a better way of dealing with paying off my debt. They are a friendly and considerate. Omer and Catherine were great and explained everything thoroughly. I would recommend them 100% – Lisa Tondu – 16 hours ago 

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– William Smillie

Omar Ali Shams was very understanding, thorough and kind. Explained my options clearly, carefully and expertly. Was very thorough and the process was made less stressful with Omar’s assistance. Thank you – William Smillie – 19 hours ago 

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– himanshu maheshwari

⭐⭐⭐⭐⭐⭐⭐ Honestly, if I could give more than 5 stars, I would.

Shelby and Christie at Sands & Associates were both very helpful throughout my entire consumer proposal process. Shelby, in particular, really stood out for me—she was incredibly kind, patient, and easy to talk to. She took the time to walk me through everything step by step and made a stressful situation feel much more manageable.

Christie was also supportive and helpful whenever I needed guidance along the way, and together they made the whole process feel smooth and well-organized.

Overall, I never felt rushed or confused, and everything was explained clearly so I could actually understand what was happening. I’m really grateful for their help and would definitely recommend Sands & Associates to anyone dealing with debt or looking for financial guidance. – himanshu maheshwari – 19 hours ago 

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– Amanda Flower

I had fell into a very stressful and challenging time financially with three children to support. The team at Sans and associates were very helpful and non-judgmental. They were empathetic and helped me through all of my options and support supported me on whatever decision was best for us. Things have been much easier since doing the consumer proposal. They’ve also provided us with financial counseling to help go over how to manage money and all of our options to rebuild our credit. – Amanda Flower – 21 hours ago 

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– Sahibpreet Singh

I had a great experience with Sands & Associates. Michelle Santos was very helpful, professional, and understanding throughout the process. She took the time to explain everything clearly and made sure I understood all my options. Her patience and support helped reduce a lot of stress during a difficult time. I truly appreciate the excellent service and would highly recommend Sands & Associates to anyone looking for financial guidance or filing a consumer proposal. – Sahibpreet Singh – 22 hours ago 

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– Sheila Delgado

The Sands Associates Company- Larissa Malancu contacted me and explained me well the details how to apply the consumer program/ bankruptcy. All the information that I have been asked had been all answered. I really recommend here very approachable and so nice. I really appreciate the time talking with her. Thank you and God bless 🙏 – Sheila Delgado – 1 day ago 

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– Pramita Banerjee

Sand & Associates has truly been a saving grace for me. The entire process was incredibly fast, smooth, and straightforward—honestly, I was surprised by how easy they made it.

When I first reached out, I was feeling overwhelmed and stressed by my financial situation. I was paying an outrageous 49.99% interest rate on a $6,000 loan, and it felt like there was no way out. From the very beginning, the team at Sand & Associates made me feel supported, safe, and confident that things could get better.

Thanks to their help, my debt has been consolidated into a much more affordable payment plan, which has significantly reduced my financial stress and given me peace of mind.

A special thank you to Radhika, who guided me through every step of the process. She was knowledgeable, compassionate, and always available to answer my questions. I am truly grateful for her support and kindness, and I thank her from the bottom of my heart.

I highly recommend Sand & Associates to anyone who is struggling with debt and looking for a professional, caring team to help them regain control of their finances. – Pramita Banerjee – 1 day ago 

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– Nicole K.

10/10 dealing with these folks. Very non-judgemental and caring atmosphere. Extremely efficient in responding to requests and easy to understand options. Thank you so much for helping in my time of need, very grateful to have folks like you at the other end of the phone. – Nicole K. – 1 day ago 

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– jordyn layton

Great company, very reliable and non judgmental. Stephanie was great to work with. – jordyn layton – 1 day ago 

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– Frogger

Very understanding no judgment. – Frogger – 2 days ago 

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What’s Driving Consumer Debt in BC?

A first in the BC Consumer Debt Study’s 13-year history: Using credit for essential costs of living income could not cover was the top-reported direct main cause of debt for over 1 in 4 individuals polled (27%) – a 136% increase since 2020 when just 11% of consumers said the main cause of their debt was due to meeting essential costs of living not covered by their income.

• Overextended credit due to general financial mismanagement, fell to become the second-most reported (25%) cause of debt for 2025 BC Consumer Debt Study respondents.
• Other frequently-reported causes of problem debt for survey participants related to events or circumstances outside the individual’s direct control: Illness, injury or health-related problems (11%), job-related issues (8%), and marital or relationship breakdown (7%) were respectively the third, fourth, and fifth main causes of debt identified by BC consumers surveyed.

Most Consumers Delay Seeking Debt Help

More than 4 in 5 British Columbians polled (83%) said they had a constant worry about debt, and 4 in 5 survey participants (81%) said their mental health suffered as a result of being in debt. Despite these considerable impacts, just 5% of people surveyed in the 2025 BC Consumer Debt Study said they sought help as soon as they knew they had a problem.

• The majority proportion (41%) of individuals polled said they waited more than two years before seeking help.
• Roughly two-thirds of survey respondents (65%) said they waited to seek professional debt help because they wanted to manage debt on their own.

Sadly, self-blame, misinformation, and the perceived stigma of financial problems also remain significant barriers to people seeking professional help at the earliest signs of financial difficulty:

• Around half of survey respondents (54% and 50% respectively) said they put off seeking help because they felt ashamed they couldn’t handle the debts they incurred or were embarrassed to ask for help, and 40% of survey participants said they were worried about being judged.
• A third (34%) of survey participants delayed seeking debt help because they thought there was no solution to their situation, and 27% didn’t know where to seek help.

Warning Signs of Debt Problems

Using credit for essential costs of living income could not cover was the top-reported direct main cause of debt for over 1 in 4 individuals polled (27%), and over 7 in 10 individuals surveyed (72%) said overwhelming stress was how they knew their debts were becoming a problem.

• Only making minimum payments and seeing debt balances remain almost the same every month, despite making payments were the top two and three signs of a debt problem reported by survey participants (62% and 56% respectively).

Debt’s Effects on Consumers

The BC Consumer Debt Study series has documented the effects of debt-related stress for over a decade, and the 2025 BC Consumer Debt Study found that:

• More than 4 in 5 people polled (83%) said they had a constant worry about debt, and 4 in 5 survey participants (81%) said their mental health suffered as a result of being in debt.
• 76% of consumers polled said being in debt caused them anxiety, and 61% of 2025’s study participants said debt-stress resulted in
• Two-thirds of individuals surveyed (68%) said debt-stress resulted in feelings of helplessness or hopelessness.
• Roughly 1 in 7 of British Columbians polled (15%) reported having thoughts of suicide due to stress caused by debt.

Debt Solutions Attempted

Only 5% of people surveyed in the 2025 BC Consumer Debt Study said they sought help as soon as they knew they had a problem, and the majority proportion (41%) of survey participants said they waited more than two years before seeking help.

Prior to their insolvency filing, most people polled attempted various different strategies to try to solve their debt problem – often by borrowing more.

• Over 1 in 3 people surveyed (38%) tried to deal with their debts by applying to extend credit limits on existing debts.
• 28% of consumers said they applied for consolidation financing, while 25% used payday or instalment loans, and 5% asked family or friends to co-sign a consolidation loan.
  • 30% of people said they borrowed from family or friends to make debt payments.

British Columbians who recently used a legal debt relief process were surveyed for the 2025 BC Consumer Debt Study, with 89% of respondents who used a Consumer Proposal, and 11% who filed Personal Bankruptcy. The legal debt solution of choice for consumers has changed considerably in recent years, with Consumer Proposals now far outpacing bankruptcy filings.

• Most people who participated in the 2025 BC Consumer Debt Study (89%) said their Consumer Proposal or Personal Bankruptcy filing has helped them manage day-to-day finances even though rising costs are noticeable.
• As well as dealing with their debt, 94% of 2025 BC Consumer Debt Study participants said their experience receiving debt help positively impacted their financial literacy in some way. 

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Access Local Debt Help, Confidential Debt Advice and Resources

Blair Mantin, President of Sands & Associates, the firm of Licensed Insolvency Trustees who undertake the annual study, says open conversations and non-judgmental support are key to removing barriers for people who may be struggling with debt, and that consumers need to know where to turn for trustworthy advice and information.

Consumers are encouraged to seek debt advice directly from a local Licensed Insolvency Trustee, whether you are feeling worried or stressed about your debt, or want to explore debt management solutions and resources:

• Licensed Insolvency Trustees are Canada’s only official debt help experts, fully endorsed and qualified to provide you impartial debt advice and solutions to consumers.
  • It’s free to talk with a Licensed Insolvency Trustee to understand your situation and explore all your options together during a confidential consultation.
  • No referral or payment is needed, and there are no pre-qualifiers to seeking help from a Licensed Insolvency Trustee.
• You don’t need to be facing an extreme financial situation to seek information and support from a Licensed Insolvency Trustee – anyone can get free, confidential advice about their situation and debt options.

Sands & Associates is BC’s largest firm of Licensed Insolvency Trustees focused exclusively on non-judgmental debt help for consumers and our full suite of services is available 7 days a week by phone, video, or in person at a local BC office near you.