Debt Load and the Impact to Psychological Wellbeing

Uncovering how debt impacts the mental health and wellbeing of Canadians and how debt relief can change lives.

Spergel’s 2nd Annual Study – October 2025

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Debt load and the impact to psychological wellbeing

What’s Inside This Report

A look at how debt affects more than just your finances, including:

  • The mental health and emotional toll of debt and its connection to anxiety, depression, and sleep issues
  • The top reasons Canadians fall into debt, from rising living costs to job loss and housing expenses
  • How debt impacts relationships, family life, and physical health
  • The stigma and shame that keep people from seeking debt help sooner
  • The transformative mental health benefits of professional debt relief and insolvency support
  • Practical solutions and mental health resources that can help Canadians cope and recover

Sneak Peek Insights for Individuals & Couples

Our Research Findings:

Debt Load and the Impact to Psychological Wellbeing
Strained Relationships

33% said debt affected their relationships, while 35% reported that their family life suffered.

Students and Grads

Sneak Peek Insights for Stretched Households

Our Research Findings:

Debt Load and the Impact to Psychological Wellbeing
Rising Financial Pressure

Between April and June 2025, over 35,000 Canadians filed for consumer insolvency, signalling sustained financial pressure on Canadian households.

Parent and Families

Sneak Peek Insights for Self-Employed & Small Business Owners

Our Research Findings:

Debt Load and the Impact to Psychological Wellbeing
Increased Business Closures

424 business insolvencies were filed in January 2025 — 7.6% higher than December and 45.2% above pre-pandemic levels.

Self employed and small business

Sneak Peak of Insights for Retirees & Seniors

Our Research Findings:

Debt Load and the Impact to Psychological Wellbeing
Talking It Out

46% of respondents felt that speaking with someone who can relate to their experience would have helped them better manage their debt stress.

Retirees and seniors

Did You Know These Truths About Debt & Mental Health?

Learn more by downloading the full report.

Source: Money and Mental Health Policy Institute (UK): The Facts 2024 study

Debt Load and the Impact to Psychological Wellbeing

Suicidal thoughts

People with problem debt are 3x more likely to have thought about suicide in the past year. This staggering statistic highlights the urgent need for support and awareness around mental health and financial struggles.

Debt Load and the Impact to Psychological Wellbeing

Mental Health & dEPRESSION

People with depression and problem debt are 4.2 times more likely to still have depression 18 months later, compared to people without financial difficulty. Financial difficulty affects mental health conditions.

Debt Load and the Impact to Psychological Wellbeing

stress & isolation

Financial difficulties are a common cause of stress, and stigma around debt can mean that people struggle to ask for help and can become isolated. The impact on people’s mental health can be severe, especially if creditors are aggressive or insensitive when collecting debts.

Mental health support resources

(CAMH) Centre for Addiction and Mental Health

Suicide Crisis Helpline

Multilingual Distress Line

Canadian Insolvency Statistics

Real numbers, stats and details. Get your copy of the full report now.

1Source: Canadian  Association of  Insolvency  and  Restructuring  Professionals / OSB “Q2 2025 Canadian Insolvency Statistics” press release

2Source: Statistics  Canada, “National balance sheet and financial flow accounts, second quarter 2025” (released Sept 11, 2025)

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Canadians FILED FOR CONSUMER INSOLVENCY IN Q2 2025

Up from 2.5% from the previous quarter1
0 %

INCREASE IN CONSUMER INSOLVENCIES IN THE PAST YEAR 

Consumer insolvencies are up 4.9% over the past year, with Ontario (13,292) and Quebec (8,372) together accounting for nearly two-thirds of all provincial filings1
0 %

Debt-to-income ratio

The national household credit-market debt-to-disposable-income ratio hit 174.9% in Q2 2025 — meaning households owed about $1.75 for every $1 of disposable income.2

Hear More About Debt & Mental Health From a Spergel Trustee

Robert Kilner & The Moolala Podcast, hosted by Bruce Sellery, explores the impact of debt on mental health and what we can do about it.

Money can affect every aspect of our lives. This includes mental health. So what happens if you have a high debt load? Spergel partner Robert Kilner joined The Moolala Podcast, hosted by Bruce Sellery, to describe the impact debt can have on mental health and what we can do about it.

Moolala podcast with Bruce Sellery

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