Financial paralysis and how to get moving again

New findings from the Credit Counselling Society’s (CCS) 2026 Consumer Debt Report reveal a concerning pattern in how Canadians are experiencing debt. Under cost-of-living pressures, many are increasing their debt load, relying on credit to make ends meet. And while they’re making their minimum payments, they’re trapped in a cycle and never getting ahead. For some Canadians, the only way to avoid money stress is to stop thinking about it altogether.

Canadians face financial pressure

According to the data, Canadians remain under significant financial pressure, with a full 68% expressing concern about the cost of living. Almost a third (30%) of respondents are anxious about money, especially women and those making less than $50K per year, while Generation X worries about their retirement. 

Compounding the issue, money insecurity is having a notable effect on how Canadians spend. Forty-two percent reported relying more this year on credit than cash, a 7% increase over last year’s numbers. Additionally, 48% carry debt, and 59% have more debt than last year. More than half (52%) pay off only a little bit more than a minimum amount due, resulting in higher balances—and less resilience for Canadians.

Debt is being normalized

A high cost of living and credit use aren’t new, but consider this: almost half of Canadians (45%) reported feeling “about the same” about their finances. Credit experts say that could be a problem. 

“[I]t appears almost half of respondents characterize their feelings about their financial situation as being neutral when compared with last year—in other words, they are feeling numb to it,” states Peta Wales, President & CEO of the Credit Counselling Society in a press release. “Debt remains a source of stress and anxiety, and ongoing financial pressure can lead individuals to become desensitized to change, even as their balances continue to rise.”

Financial paralysis is a term used in the world of finance to describe the effect of money stress on some people. Signs include avoidance, inaction, and shutting down—or numbness. When in this state, simple financial tasks like using a budget, paying bills, or even checking accounts can feel beyond reach. Even worse, a person might overspend to compensate for negative feelings or out of a sense of helplessness. The primary solution—building a solid financial foundation—is a laughable suggestion to someone who’s gone numb.

Snap out of it

There’s no magic bullet for financial paralysis, but there are actionable strategies you can take to maneuver yourself in a strong position. That’s important, because research suggests that just like with compound interest, wins build on wins.

Change your mind

“Just as we learn language, customs, and social norms from the culture around us, we also absorb messages about money,” writes Nathan Astle in Psychology Today. Because of cultural money taboos, it’s difficult to talk about finances, and any perceived failure manifests as guilt and shame.

If you want to find financial (and emotional) stability, it’s worth reaching out for help in this area. Therapists, peers, and support groups can help you untangle your feelings about money, while a financial advisor or credit counsellor can put your portfolio into perspective. 

Change your habits

Although tedious, some money habits just work. Build (and stick to) a realistic budget. Prioritize paying down your debt. Build up an emergency fund.

Change your timeline

You just want a lifeline when you’re drowning in debt. You feel impatient because it’s uncomfortable—and because each passing month you owe even more.

The truth is, paying down debt is a long-term project and you’ll be better off with a realistic sense of what it will take.

Debt doesn’t just drain your bank account—it freezes your decisions. The stress and shame can make avoidance feel safer than action, but inaction only deepens the trap. Luckily, there are ways to get moving again. Face the numbers, make a plan, act consistently, and ask for the help you need.

Read more about debt:

• The MoneySense guide to debt management
• What is the best way to pay down debt?
• Debt collection in Canada: What collectors can and can’t do
• How to consolidate debt in Canada

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