A first in the BC Consumer Debt Study’s 13-year history, the latest study finds costs of living are now the number one cause of problem debt for consumers surveyed, causing significant challenges for BC families

VANCOUVER, British Columbia, Jan. 19, 2026 (GLOBE NEWSWIRE) -- Sands & Associates, BC’s largest firm of Licensed Insolvency Trustees dedicated to personal debt help services, released complete findings from their annual BC Consumer Debt Study today, highlighting unique, in-depth insights into consumer debt problems in the province.

The study series explores common causes of problem debt and its impacts on British Columbians and their families, and this 13^th annual study polled over 2,300 people who recently made an insolvency (debt relief) filing in BC.

Inflation and strained household finances were recurring themes in this year’s study, and President of Sands & Associates, Blair Mantin, shares more on this:

“Our Licensed Insolvency Trustees are talking with more people than ever before who are finding it overwhelming and untenable to manage their debt repayment on top of basic living expenses. No one should be facing situations where they must choose between feeding their family and paying bills, and we need to ensure consumers know where to seek support and solutions that will allow them to get back on track. No one should ever feel alone in solving a debt problem.”

Click here to read the 2025 BC Consumer Debt Study report in PDF format

Costs of Living Driving Consumer Debt Problems in BC

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.

Several 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 top third, fourth, and fifth main causes of debt identified by BC consumers surveyed.
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.

Over half (58%) of people polled said credit card debt was the main type of debt they had – over 4.5 times more than the next leading debt type. Payday or instalment loans were the second-most reported type of debt for 12% of consumers surveyed, use of which has risen noticeably since 2020

Almost all participants in the 2025 BC Consumer Debt study (95%) indicated their household has been impacted by recent inflation increases, most notably:

According to over a quarter (27%) of study respondents, household housing costs (rent or mortgage) have increased 50% or more.
38% of individuals surveyed indicated their household food/grocery costs have increased 50% or more.
28% of people polled said their household gas/transportation costs have increased 50% or more.

Debt Weighing Heavily on BC Consumers

For over a decade, the BC Consumer Debt Study series has documented the considerable harm problem debt has on an individual’s wellbeing, and findings from the 2025 BC Consumer Debt Study include:

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 depression.
Two-thirds of individuals surveyed (68%) said debt-stress resulted in feelings of helplessness or hopelessness.
Roughly 1 in 7 of all British Columbians polled (15%) reported having thoughts of suicide due to stress caused by debt.

Over 7 in 10 people surveyed (72%) identified overwhelming stress as an indicator that 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).

Despite Serious Impacts of Problem Debt, Most BC Consumers Wait to Seek Help

Even though suffering the considerable effects of debt-stress, the majority proportion (41%) of individuals polled said they waited more than two years before seeking help – 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.

Sands & Associates aims to foster honest discussions and increase awareness and support for consumers facing financial challenges. We strongly encourage readers to explore the many insights provided by the BC Consumer Debt Study series, and learn more about consumer debt issues, experiences, and resources.

Blair Mantin, Licensed Insolvency Trustee
778-735-0498
bmantin@sands-trustee.com

PDFs available:
http://ml.globenewswire.com/Resource/Download/a84b87a1-21bc-4497-995f-34353829201c
http://ml.globenewswire.com/Resource/Download/e9e3d0dd-8cc4-4c3a-b17f-28221047b50b

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