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Young Canadians more likely to have missed a bill payment this year

In a recent survey conducted in September, Equifax Canada has revealed that young Canadians are experiencing higher levels of financial stress and are more likely to have missed a bill payment this year. The study paints a concerning picture of the financial challenges faced by younger adults in the country, shedding light on their anxieties about personal debt and housing costs.

According to the survey findings, a significant 36 percent of younger adults aged 18 to 34 reported having missed a bill payment at some point in the year. In contrast, the overall figure for all age groups stood at 23 percent. This disparity suggests that young Canadians are disproportionately burdened by financial obligations, making it more challenging for them to stay on top of their bills.

Equifax Canada also highlighted that 52 percent of respondents in the 18-34 age group expressed anxiety about their personal debt, a significantly higher percentage compared to the overall figure of 39 percent. This heightened financial anxiety among young Canadians is indicative of the challenges they face in managing their finances in an increasingly expensive world.

The housing crisis in Canada has been a persistent concern, and Equifax's survey further underscores this issue. A staggering 30 percent of respondents mentioned that they had to seek additional sources of income to cover rising mortgage or rent payments. As housing costs continue to surge, many Canadians are forced to explore alternative means of income to make ends meet.

Furthermore, almost 20 percent of survey participants revealed that they are currently in precarious financial situations, contemplating the need to move due to affordability issues. This alarming statistic highlights the dire consequences of the housing affordability crisis, particularly for the younger generation.

To address their financial challenges, younger Canadians are increasingly turning to second or third jobs, commonly referred to as 'side hustles,' in an effort to meet their financial obligations. The survey found that they are more likely to explore these alternative sources of income compared to other age groups. This trend reflects the resourcefulness of young adults who are determined to navigate the turbulent financial landscape and secure their financial well-being.

Equifax Canada's report has brought into focus the financial difficulties faced by young Canadians and the urgency of addressing these issues. The combination of missed bill payments, anxiety over personal debt, and the need for additional income streams paints a concerning picture of financial instability among the younger demographic.

The survey also underscores the overarching concerns related to housing affordability in Canada, with a significant number of respondents facing the possibility of moving due to unaffordable living costs. This issue not only impacts young Canadians' immediate financial stability but also raises concerns about their long-term financial prospects.

As policymakers and financial institutions grapple with these challenges, there is an increasing need for comprehensive solutions to address housing affordability, provide financial education and support, and offer opportunities for economic empowerment to young Canadians. Equifax Canada's findings serve as a call to action, emphasizing the importance of understanding and alleviating the financial burdens faced by the country's youth.

In conclusion, the Equifax Canada survey highlights the disproportionate financial stress experienced by young Canadians, with a higher likelihood of missed bill payments and increased anxiety over personal debt. As housing costs continue to rise, these challenges are further exacerbated, prompting younger adults to seek additional income through side hustles. The findings underscore the urgent need for concerted efforts to address these issues and ensure the financial well-being of Canada's younger generation.