If you’ve ever lost sleep over money, you’re not alone. According to the 2025 FP Canada Financial Stress Index, nearly half of Canadians say money is their top source of stress – ahead of personal health, work, and relationships. The effects of financial stress go beyond your bank account. The Financial Consumer Agency of Canada (FCAC) reports that:
- 1 in 3 Canadians is short of money at the end of the month.
- Over half of working Canadians say financial stress impacts their job performance.
At Spergel, we speak to Canadians every day who are overwhelmed, exhausted, and unsure where to turn. The good news? Help is available — and often, the first step brings the biggest relief.
What is financial stress?
Financial stress is the mental and emotional strain that arises when your financial resources don’t feel sufficient to meet your needs. It can be triggered by a wide range of situations – from overwhelming debt, living paycheque to paycheque, and rising living costs, to unexpected expenses, job loss, or lack of savings.
Importantly, financial stress isn’t limited to low-income households. It affects Canadians across all income levels, life stages, and professions – including business owners, retirees, and young professionals. You might feel constantly anxious about bills, avoid checking your bank account, or experience a sense of dread every time your phone rings. These are common signs of financial stress – and they don’t mean you’ve failed. They mean you need support.
In many cases, financial stress doesn’t come from a single bad decision – it builds gradually, often through circumstances beyond your control. And when left unaddressed, it can lead to serious emotional, physical, and psychological consequences as we discovered in our recent Spergel study, Debt Load and the Impact to Psychological Wellbeing (2024) – which is why recognizing it is the first step toward relief.
How financial stress affects your life
The impacts of financial stress are far-reaching. According to our proprietary study, the FCAC, and HelpGuide.org, money stress can:
- Double your risk of poor overall health
- Quadruple your chances of sleep issues, headaches, and chronic illnesses
- Increase your risk of:
- Heart disease
- Anxiety and depression
- Digestive issues and high blood pressure
- Cause relationship conflict and social withdrawal
- Lead to unhealthy coping behaviours, such as substance use or overeating
More than half of working Canadians say their finances negatively affect their focus and performance at work.
Top causes of financial stress in Canada
It’s no surprise so many Canadians are feeling the strain – especially with the current economic climate. Common causes include:
- High cost of living: from groceries to rent, everything costs more.
- Interest rate increases: making debt more expensive to manage.
- Living paycheque to paycheque: with little buffer for emergencies.
- Unexpected expenses: like car repairs or medical bills.
- Job loss or reduced hours
- High debt levels: Canada’s consumer debt now exceeds 185% of disposable income, the highest in the G7.
Breaking the cycle: financial stress and mental health
Financial stress and mental health are deeply connected. In fact, many experts refer to it as a vicious cycle:
Financial problems → Mental health struggles → Difficulty managing money → Worsening financial stress → More mental health challenges
The result? You feel stuck, ashamed, and unsure what to do next. The first step to breaking that cycle is acknowledging what you’re facing – and knowing you don’t have to go through it alone.
How taking action can reduce financial stress
Even if your financial situation feels overwhelming, taking action – even a small one – can immediately help you feel more in control. Here’s how it helps:
- You get clarity. Facing the numbers helps reduce anxiety about the unknown.
- You regain control. Knowing your options gives you power and direction.
- You reduce isolation. An expert Licensed Insolvency Trustee (LIT) at Spergel can offer guidance and support, not judgment.
- You start to heal. Many clients tell us they felt immediate relief after their free consultation – before any formal steps were taken.
How Spergel helps Canadians reduce financial stress
At Spergel, we’ve helped over a hundred thousand Canadians find a way out of debt and into financial recovery over the last 35 years – with respect, dignity, and no shame. As Licensed Insolvency Trustees, regulated by the Office of the Superintendent of Bankruptcy Canada, we are the only professionals legally authorized to file consumer proposals and bankruptcies in Canada.
We walk you through every available debt relief option, including:
We’ll help you choose what’s best for your situation – no one-size-fits-all solutions, and no judgment.
Financial stress: FAQs
Here are some of the most common questions we receive about financial stress in Canada:
Are Canadians financially stressed?
Yes – many Canadians are financially stressed, and the numbers show it. According to the 2025 FP Canada Financial Stress Index, nearly half of Canadians say money is their number one source of stress, ahead of personal health, work, and relationships. The Financial Consumer Agency of Canada also reports that 1 in 3 Canadians run out of money by month’s end, and over 50% say financial stress affects their sleep, health, and work performance. It’s a widespread issue that touches people of all income levels and life stages.
What to do if you’re struggling financially?
If you’re having a hard time making ends meet, know that you’re not alone – and there is help available. Start by getting a clear picture of your income, expenses, and debts, then speak to a Licensed Insolvency Trustee. At Spergel, we offer free, confidential consultations to walk you through your options – whether it’s budgeting support, a consumer proposal, or another form of debt relief. Reaching out is the first step toward feeling better.
How to relieve financial stress?
Relieving financial stress starts with taking small, proactive steps. Begin by talking to someone you trust, creating a simple budget, or reaching out for professional guidance. Even one conversation with a Licensed Insolvency Trustee can ease anxiety by giving you clarity, support, and a plan. The sooner you take action, the sooner you can start to feel more in control – and less overwhelmed.
Take the first step – and sleep easier tonight
If money worries are affecting your health, your sleep, or your peace of mind, you don’t have to go through it alone. Talking to a Spergel Licensed Insolvency Trustee is:
- Free
- Confidential
- Judgment-free
Book your free consultation today or call 1-877-557-7367 and let today be the day you start working on your financial stress and feeling better about your future.
