Caleb Hammer’s Financial Audit exposes a couple’s Buy Now Pay Later crisis — a debt trap many Canadians can relate to

The culprit isn’t unusual. It’s a pattern of financial avoidance, impulse spending and a growing stack of buy now, pay later (BNPL) instalment payments that quietly spiralled out of control.

"There is no organization"

Brian admitted his spending habits haven’t helped matters. "A lot of the times I just won’t care… I’ll go out to eat every day when I’m at work and I’ll order on Amazon all the time," he told Hammer.

Emma was equally candid. "There is no organization, I’ll be honest." She also revealed the couple had dozens of active instalment payments running at the same time.

Financial avoidance is extremely common among couples dealing with stress or debt. When no one takes ownership of the numbers, small spending habits can quietly spiral into major financial problems. This couple’s story is far from unique — and small shifts in mindset and approach could have kept them out of trouble.

Spending habits that quietly wreck a budget

Emma and Brian’s purchases weren’t large expenses, but the frequency with which they made them quickly inflated their debt.

Brian admitted that impulse spending is one of his biggest weaknesses: "I blow a lot of money just on stupid stuff all the time. That’s my big problem." Some of that spending went toward collectibles. "[I] probably [spend] about a thousand bucks a month on collectible crap," he added.

Between daily takeout meals, online purchases and impulse buys, the couple created a constant stream of new expenses that made it nearly impossible to reduce their debt.

Without a system for tracking spending, these small purchases can quietly derail a budget. Debt is a growing concern for Canadians: total consumer debt reached $2.65 trillion in Q4 2025, a 3.1% increase year-over-year according to Equifax Canada. At the individual level, the average non-mortgage debt was $22,377 (2).

Debt creep: How small purchases can snowball

As the couple’s spending habits snowballed quickly, they were forced to tap into their registered savings to pay down debt — but the cycle continued. "We paid off a car… and then we racked them up further than they were," Emma said.

This is a common trap with BNPL services. Each purchase may seem manageable — a $40 payment here or a $25 instalment there. However, when dozens of payments pile up at once, the total monthly obligation can balloon into hundreds or even thousands of dollars.

Instalment services can create the illusion of affordability, encouraging consumers to spend money they would not otherwise pay upfront. Research from Harvard Business School found that BNPL adoption led to "immediate and substantial increases in spending," with shoppers spending about 10% more per purchase on average after BNPL (3).

The Financial Consumer Agency of Canada (FCAC), the federal agency responsible for protecting consumers of financial products and services, has flagged concerns about BNPL products, including a lack of clarity in contracts and the potential for unexpected fees (4).

Canada’s BNPL market is expanding rapidly: It is projected to reach US$11.32 billion (C$15.6 billion) by 2030 — a 12% annual increase — with platforms like Affirm, Klarna, Afterpay and Sezzle all competing for Canadian consumers (5).

This dynamic escalates quickly. Imagine someone finances just 10 purchases at $200 each using a typical four-payment instalment plan. Each purchase may require only $50 every two weeks — which feels manageable on its own. But if all 10 purchases overlap, that person suddenly owes $500 every two weeks, or about $1,000 a month. And that’s before factoring in any late fees or interest charges.

Financial stress can damage a relationship

Money problems often extend far beyond the bank account. Emma admitted she had grown frustrated with Brian’s passive attitude toward finances: "I feel like he doesn’t [care]… he’s just there." She confessed to feeling resentment building over their shared obligations.

Brian, for his part, told Hammer he felt unheard: "A lot of the time the outcome I want won’t happen." But complacency clearly hasn’t helped the couple, either.

Financial disagreements are one of the most common sources of stress in Canadian relationships. A February 2024 BMO survey found that 32% of partnered Canadians say spending is often a source of conflict in their relationship, and 36% admitted they are not always truthful with their partner about their finances (6). A separate Simplii Financial poll found that 38% of Canadians say money is a cause of stress in their relationship — rising to 46% among couples aged 18 to 34 (7).

When couples don’t agree on priorities — whether it’s spending, saving or career decisions — money issues can quickly morph into personal conflicts.

A way to turn dozens of payments into one

When debt spirals out of control, some households may choose to use debt consolidation — combining multiple balances into a single, lower-interest loan or payment.

In Canada, there are several ways to consolidate debt. Canadians with decent credit can apply for a personal consolidation loan through their bank, credit union or an online lender.

For those who do not qualify for a traditional loan, non-profit credit counselling agencies like Credit Canada and the Credit Counselling Society offer Debt Management Programs (DMPs), which are structured repayment plans that combine unsecured debts into one monthly payment, often with negotiated reductions in interest. These programs are government-regulated and consumer-protected (8).

If you owe more than $10,000 in unsecured debt and cannot keep up with payments, speaking to a Licensed Insolvency Trustee (LIT) about a consumer proposal is also worth considering. LITs are the only professionals in Canada legally authorized to administer formal debt relief solutions. However, be aware that consumer proposals will negatively affect your credit score three years after you complete your proposal or six years from the date you filed, whichever comes first (9). It will effectively signal to potential lenders that you’ve had troubles paying off debt in the past and that you are a high-risk borrower.

The Financial Consumer Agency of Canada’s free Debt Solutions Portal can also help Canadians explore which options fit their situation.

Getting professional help with a financial reset

For couples dealing with complicated finances, a neutral third party can help.

In Canada, fee-only financial planners and certified financial planners (CFPs) are trained to help households create a realistic plan for managing debt, building savings and planning for the future. The Financial Planning Standards Council (FP Canada) is the national professional body for financial planners and offers a planner-search tool at fpcanada.ca.

According to FP Canada’s Financial Stress Index 2025, Canadians who work with a financial planner are five times less likely to be stressed about debt than those without one (10). Thirty per cent of Canadians cite anxiety over debt as a top financial stressor — a figure that drops sharply among those with a financial plan.

Building wealth once the debt is under control

When looking to build a financially robust future in the midst of a debt spiral, even small investments can grow significantly over time thanks to compounding.

For example, investing just $5 a day — roughly the cost of a coffee — adds up to about $150 a month. If that money were invested and earned an average annual return of 7%, it could grow to more than $180,000 after 30 years.

Luckily Canadians have a powerful tool at their disposal: the tax-free savings account (TFSA). Any investment gains inside a TFSA are completely tax-free — meaning every dollar of growth stays in your pocket. The 2026 annual TFSA contribution limit is $7,000, with a cumulative lifetime limit of $109,000 for those who have not contributed anything since the account’s inception in 2009 (11).

That’s the power of starting small and staying consistent.

The bottom line

During the episode, the couple rated their own finances a 2 out of 10. Their story highlights a broader truth: Many households struggle not because they earn too little, but because they never build a system for managing their money.

The good news is that with the right tools, guidance and habits, even difficult financial situations don’t have to be permanent.

What Canadians can do right now

Early in the podcast, Hammer reminded the couple: "You have access to every resource that existed in the history of the world."

If Emma and Brian’s story feels familiar, here are concrete steps for getting back on track:

1. Know what you owe

Before anything else, list every debt, every BNPL instalment plan and every minimum payment. The FCAC’s free online tools at canada.ca/en/financial-consumer-agency can help you organize this.

2. Use a budgeting app that works in Canada