Financial Stress & Mental Health – A New Study is Offering Hope

The recently released 2025 Financial Stress Index, conducted by FP Canada, has confirmed what many of us already know: financial difficulties and concerns about money are the leading sources of stress for Canadians.

According to the participants in the study, this financial stress is directly responsible for loss of sleep, general anxiety, depression, a reduction in workplace productivity, and stress in their personal relationships.

It’s not all doom and gloom, though. This study does offer a glimmer of hope for Canadians who are dealing with financial stress and the impact it can have on their mental health. Let’s take a look.

What Exactly is Causing Financial Stress in Canadians?

This new study paints a pretty clear picture when it comes to the causes of stress among Canadians. Participants in this study (42%) identified money issues as their main stressor. This is a significantly higher percentage than health issues (21%), relationship problems (17%), or even work stress (17%).

Of the Canadians who named money issues as their main stressor;

• 64% said high grocery prices were a concern.
• 54% named inflation as one of the causes of their stress.
• And 41% said that gas prices were a major contributor to their stress.

Outside of these external issues, which we have very little control over, there was one factor that the majority of Canadians mentioned as a cause of their financial stress: monthly debt and bill payments.

• 53% of respondents said their rent or mortgage payments are causing their stress.
• 37% mentioned monthly bills and expenses.
• And 30% were concerned about monthly debt payments.

These statistics leave very little doubt: financial stress isn’t just a minor worry for some Canadians. It’s a major burden that is having a devastating effect on our mental health.

Financial Stress is Draining our Mental Health

It’s clear that many Canadians are stressed about their financial situation. And this stress can have a debilitating effect on our health. According to the 2025 Financial Stress Index, 38% of Canadians have reported negative mental health side effects due to their financial stress.

• 49% of Canadians have lost sleep due to financial stress.
• 38% have said their financial problems are causing them anxiety and depression.
• 41% of Canadians say their financial situation has them feeling overwhelmed.
• And 38% feel helpless and have a lack of hope about their financial future.

This constant cycle of monthly debt, financial worries, and the related mental health issues they cause is a daily concern to many Canadians. But, it’s not all doom and gloom. Tucked away in the 2025 Financial Stress Index study is a statistic that could offer a bit of hope for many Canadians.

Some Canadians are Feeling More Hopeful About Their Financial Future

And now for a little good news: the 2025 Financial Stress Index has found overwhelming evidence that Canadians who work with a financial professional experience fewer mental health issues related to finances and are significantly more hopeful about their financial future.

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Editor’s Note:

Financial professionals don’t have to contribute to your financial burden. Our office offers no-cost consultations and no-money-up-front options to help ease your debt burden and financial stress. Reach out to set up a no-obligation consult.
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Let’s take a quick look at some of these encouraging statistics.

• More Hope – 60% of Canadians who work with a financial professional have a brighter outlook concerning their financial future.

• More Sleep – Only 42% of Canadians working with a financial professional lose sleep due to financial worries, as opposed to 53% who go it alone.

• More Control – A significant 73% of Canadians who work with a financial professional feel that their actions can have a positive influence on their financial future (compared to 59% of Canadians without professional help).

• Less Stress – Only 34% of Canadians working with a professional identify money issues as their top stressor.

These statistics underscore a very powerful truth: financial professionals, such as a Licensed Insolvency Trustee (LIT), can help ease the monthly stress and financial burdens many Canadians are experiencing.

Why Don’t More Canadians Seek Help for Financial Stress?

The 2025 Financial Stress Index has done a really good job of highlighting the financial stress Canadians face and the mental health issues that it can create. Also included in this study are the reasons why so many Canadians struggle to reach out for financial help, even if they understand that it can be beneficial.

These reasons include:

• Not Sure What to Do – 52% of participants reported having no idea how to resolve their financial issues and fear that any decision they make could exacerbate their situation.

• Can’t Afford It – 51% in this study said they couldn’t afford to save, invest, or pay down debt due to a lack of disposable income.

• Stress & Anxiety – 43% of people in this study said they were so stressed and anxious about their finances that they just don’t bother addressing it or attempting to rectify it.

• Overwhelmed – 41% said that they’re so overwhelmed with their finances that getting them under control just seems impossible.

• Not Sure Where to Start – 35% of participants said they would like to improve their finances, but have no idea how, or even where to start.

For many Canadians, these are very real barriers to getting their financial stress under control. And, to make matters even worse, some of these barriers don’t just get in the way of finding professional help; they exacerbate financial stress and prolong its effects.

Not taking control of financial stress creates more anxiety and uncertainty, which creates more barriers to seeking help, which creates more anxiety and uncertainty. It’s a never-ending cycle that, sadly, many Canadians find themselves trapped in.

The good news is, the above concerns are based mostly on misconceptions about how financial professionals, particularly a Licensed Insolvency Trustee, actually work.

Professional Financial Help is Within Reach

As the 2025 Financial Stress Index has been able to show, financial professionals can ease financial stress (and the mental health issues it causes), as well as offer Canadians hope about their financial future.

And, if you have any of the above concerns about seeking help, fear not; professional financial help is within reach of most Canadians, regardless of their situation. Let’s take each of the above concerns and try to dispel them for you.

• Not Sure What to Do – Speak to a Licensed Insolvency Trustee. We can work with you to investigate your finances, help you understand your options, reduce or eliminate debt, lower your monthly payments, and help you create a better financial future.

• Can’t Afford It – You can schedule a free, no-obligation consultation with us. If applicable, we can offer debt reduction solutions that require no out-of-pocket money to get started.

• Stress & Anxiety – With a licensed professional at your side, you won’t need to make these difficult decisions alone. Getting control of your finances will be considerably less stressful and anxiety-inducing with help.

• Overwhelmed – Once we decide to work together, we’ll handle the majority of the heavy lifting, from contacting your creditors to setting up payment plans to filing all the needed paperwork. Working with a debt reduction professional will make getting your finances under control less overwhelming.

• Not Sure Where to Start – You can start with Powell Associates Ltd! We’re licensed and regulated by the Canadian government, and we’ve helped numerous Canadians regain their financial freedom. We can do the same for you.

No Canadian should feel helpless with regard to financial stress and the mental health issues it can create. Contact us today to set up a free consultation with one of our Licensed Insolvency Trustees. Our trusted professionals will work with you to help reduce your financial stress and improve your financial well-being.