Bank of Canada Rate Announcement Won't Change One Thing: Financial Despair is Becoming a Family Affair

Credit Counselling Society urges Canadians to take control of their finances, regardless of interest rate news

NEW WESTMINSTER, BC, April 14, 2025 /CNW/ - As the Bank of Canada prepares to announce its latest interest rate decision on April 16, many Canadians may be holding their breath for some financial relief. But whether the rate holds steady or decreases, the reality for millions of households remains the same: financial stress is at a breaking point. Debt continues to grow and the pressure of making ends meet only intensifies with rising costs, inflation, tariffs, and federal election uncertainty dominating the headlines.

"In times like these, it's easy to feel overwhelmed. But when the world feels uncertain, taking control of what you can—your own finances—can bring a sense of stability," states Peta Wales, President & CEO of the Credit Counselling Society (CCS). "The news about interest rates might grab attention, but it won't solve the ongoing financial strain that so many Canadians are dealing with."

The generational divide for how Canadians are coping with debt has become more apparent than ever. The financial pressures impacting consumers are felt across age groups, each facing unique challenges and decisions about how to move forward.

For Canadians aged 55 or older, the financial landscape is especially uncertain—but the challenges can differ significantly within this age group. Those approaching retirement are often focused on paying down debt and hoping to retire without financial burdens. Meanwhile, those already in retirement often rely on investment income to supplement their pensions.

With recent market volatility, many who are 55+ may be experiencing a drop in the income they were counting on. In addition, this age group has also seen the largest increase in average debt levels over the past couple years, according to Equifax Canada's Q4 2024 Consumer Credit Trends Report—making a challenging situation even more difficult to navigate.

"If you're in this age group, you may be considering drastic options like a reverse mortgage or selling and downsizing just to stay afloat. But these decisions shouldn't be made in isolation or out of panic," explains Isaiah Chan, Vice President of Programs & Services at CCS. "There are often more options than people realize—and when you're under stress, it's even more important to get a clear picture before making big financial choices."

The 18–34 age group has been among the most proactive—taking on side gigs, cutting back on spending, and doing what they can to get by. But despite their resilience, they're also the least likely to reach out for help, according to findings from CCS's 2025 Consumer Debt Report.

"There's a stigma that surrounds seeking financial advice, particularly for younger people," says Anne Arbour, Director of Partnerships & Education at CCS. "But no one should feel ashamed for needing support. For those who don't know where to start, we offer webinars, online learning, and practical money tips to help people take small, manageable steps—even in the face of uncertainty like tariffs or inflation."

Meanwhile, Canadians aged 35–54 are often caught in the financial crosshairs—balancing their own financial future while supporting both adult children and aging parents. Data from Equifax Canada's Q4 2024 Consumer Credit Trends Report shows that this group has seen the highest increase in non-mortgage debt delinquencies over the past two years, adding more instability to their already challenging circumstances.

"The pressure to provide support for both your kids and your parents can be overwhelming," adds Chan. "Whether you're just trying to keep your household running or helping others stay afloat, the earlier you reach out for help, the more options you'll have."

According to the 2025 Consumer Debt Report, 44 per cent of Canadians say rising interest rates have made it harder to manage their debt—and nearly one in four have lost sleep over it. With economic uncertainty still looming, many households haven't had the chance to recover, and for many, it feels like they're falling further behind.

"Even if the Bank of Canada announces a rate decrease, it won't undo the financial pressure people have been under for the past several years," says Wales. "But this isn't just about interest rates—it's about helping people regain their sense of control and confidence. You don't need to wait for economic changes or rate adjustments. Getting expert, judgment-free support can make a meaningful difference in building a stable financial future for you and your family."

About the Credit Counselling Society
The Credit Counselling Society is a non-profit organization dedicated to helping consumers manage their money and debt better. CCS provides free, confidential credit counselling, debt repayment options, budgeting assistance, and financial education. Visit nomoredebts.org

SOURCE Credit Counselling Society of BC

Media Inquiries: The Credit Counselling Society has spokespeople from across Canada available for interviews to discuss this topic in more detail as well as any other relevant financial topics. Please feel free to reach out to the number below: Garrett Johnson, Media & Content Specialist, Direct: 604-636-0292, Email: [email protected]