More than half (56.6%) of Canadians have hidden their financial situation from a friend, partner or family member, according to a survey by debt-relief firm Harris & Partners.
Canadians may hesitate to discuss their financial difficulties with their loved ones from fear of judgment, social pressure to keep up appearances, lack of financial literacy or to avoid conflict in relationships.
“[Keeping debt secret in a relationship] is way more common than it should be,” Joshua Harris, CEO of Harris & Partners, said in an interview. “[M]ost of the time they end up finding out before the end of the insolvency, and sometimes it goes really, really sour.”
In many cases, it’s not the debt that’s the problem, it’s the secrecy. Partners sometimes say things like: “Why did you lie to me? I could have asked my mom to help us pay this off, we could have taken a mortgage on the house, I could have worked extra hours,” he added.
Consumer debt in Canada is common, 74.1% of Canadians have had more than $5,000 in credit card debt at one time and 52.6% have had fewer than $200 left at the end of the month after paying bills and debt, the survey found.
But Canadians don’t feel the same about all types of debt. So-called good debt, like student loans and mortgages are seen as an investment in the future, while bad debt like credit cards and payday loans are viewed as an inability to earn enough or a sign of frivolous spending, Harris said.
“[GenZ and Millennials are] connected online, everyone wants the newest iPhone and everyone wants to have the newest clothes,” Harris said. “With the slightly older generation, GenX and even some Boomers, it’s really just how the economy has affected them. Interest rates were out of control for a time and now with the tariffs, we’re going to see it all over again.”
One of Harris’s clients has owned a small business for 20 years, but the business is facing financial difficulties. “He was crying to me saying, ‘I never thought I would ever have to say the word bankruptcy, I’m an entrepreneur,’” he said.
Older working Canadians facing financial trouble may be depleting their RRSP or home equity to cover everyday expenses, which means a smaller inheritance for their children and trouble supporting themselves through retirement, Harris added.
More than three-quarters (77.1%) of Canadians had taken on debt in the past six months to keep up with rising costs and 78.7% expect to do so in the next six months, the survey found.
Harris expects manufacturing and logistics sectors to slow in a trade war with the U.S. And as some Canadians earn less and there’s an upward pressure on prices, more Canadians may need to borrow money to buy necessities.
The online survey of 1,332 Canadians was conducted by Harris & Partners in February 2025.