Canadians continue to face financial strain amid the heightened cost of living, according to the latest report from Equifax, which shows that younger Canadians generally struggle more than older Canadians.
Equifax’s Spending Survey, conducted by Leger and released Thursday, included the responses of 1,532 adult Canadians from July 17 to July 19.
Forty per cent of all respondents said they were spending more than a year ago, while just 18 per cent said they were spending less. Forty-two per cent of those spending more identified as being younger than 55, while 36 per cent were 55 or older.
Respondents younger than 55 were also more likely than older Canadians to experience financial challenges across nearly every category, Equifax says.
Younger Canadians are more likely to struggle to find stable employment than most older Canadians, with youth unemployment data typically higher than the national average.
This also comes after MNP reported last month that many Canadians were facing a form of “lifestyle shrinkflation” amid the high cost of living.
In that report, three in five Canadians (61 per cent) said at least half of their income is already committed to bills, debt payments and regular expenses before it arrives, while around one-third (32 per cent) said most of their paycheque is already committed before it arrives.
A large portion of respondents to the Equifax survey say they are also using their savings, credit cards or other lines of credit to cover everyday expenses, with many piling up debt as they go.
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Nearly a quarter (23 per cent) say they are using savings to pay for day-to-day needs, while 20 per cent say they relied on credit more than last year. Thirteen per cent said they were borrowing money elsewhere to cover basic living expenses.
“The results point to mounting financial pressure for many households,” Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said in a release.
“When these pressures begin to overlap, households can lose financial flexibility quickly.”
Twenty-nine per cent said they were using credit to pay for essentials more than they were a year ago, and the same amount said they felt less confident in their ability to manage financial demands than a year earlier.
Equifax says Canadians younger than 55 were more likely to use credit for living expenses than older respondents.
At the same time, many respondents say paying down debt is also proving difficult, including on lines of credit and credit cards.
Twenty-five per cent said they expect they will only be able to make minimum monthly debt payments, while seven per cent believe they are likely to fall behind on debt payments altogether.
Equifax says those who were more likely to make only minimum payments on debt included those younger than 55, those who have kids, or both. Meanwhile, those age 55 or older were more likely to pay their balance in full.
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“Financial pressure often builds gradually, and making only the minimum payment can sometimes feel like a way to manage through a difficult month,” Julie Kuzmic, head of consumer advocacy and compliance at Equifax Canada, said in the release.
“However, balances can take much longer to repay and cost considerably more in interest.”
Many Canadians are cutting back where they can to help keep up with the heightened cost of living and manage debt levels, the survey report shows.
About two-thirds (67 per cent) of respondents said they reduced spending on entertainment and leisure, while 40 per cent spent less on personal care. Equifax says women were the most likely to reduce spending in these categories.
With these financial challenges in the near term, the survey also suggests many see saving for the future as a daunting goal.
Nearly half of all respondents (44 per cent) said they are worried they won’t save enough for retirement, 35 per cent are concerned about affording a major purchase, such as a down payment on a home, and 26 per cent worry they won’t be able to financially support family members, including their children’s education or aging parents.
“Anyone seeing their balances continually rise with little hope at repayment should review payment obligations, prioritize due dates and explore options with their lenders or a reputable credit counsellor before their financial situation limits their options,” Kuzmic said.
— with a file from Global News’ Uday Rana
Everyone, ring up massive friggin debt, don’t pay, leave country, livin da life!
Working for a dollar that ain’t worth a dime! Not facking rocket science
Way too much to taxes… flat wages… staggering inflation accumulation since COVID. Bought a fast food burger lately? This country is sick, its infected by the Liberal Party of Canada
Boy, I really have these people fooled with all the different names I post under.Goes to show you how smart us Liberals are.
Last night while I was high on my Government Safe Supply, I looked up at the Moon and saw PM Mark Carney’s face staring back at me.Suddenly a giant Elbow appeared in the sky and used the stars to write “Ben,you are my top bootlicker!!! Keep up the good work !!!.”
At that moment I knew I found my purpose in life as the Mark in the Moon smiled back at me.
This mess is 100% the responsibility of all levels of Canadian government leadership. Our economic policies of the past 12 years have been such an unmitigated disaster that an entire generation have been sacrificed so that a select few can continue to line their own pockets…
I personally want to thank the Liberal Party of Canada for making sure life has become unaffordable, unsafe, unprotected and unliveable. You have done a great job at pushing the disabled, retired, verterans and working class down so hard that they now live in poverty. You also did a good number on the “middle class”, whihc were just working class that drive Volvos and sit in offices, but now they have to use food banks, too. I also want to give the NDP’s the credit they deserve with this Special Mention, because if they hadn’t joined their votes with the liberals we wouldn’t have the chance to watch our country turn into a third world hellhole police-state. You all know who you are and the part you played.
Gobble gobble, mouthful
“Affordability has never been so good!”
– Mark Carney
The Liberals have cut income taxes, cut the carbon tax, and eliminated the federal tax on petrol in these hard times caused by Trump. Poilievre and the conservatives have contributed nothing to Team Canada while contributing a lot to Team USA. Many Canadians are disappointed in our opposition party. Sad.
Clown shoes carny and his azz eaters
Carnhole and his swallowers ya can’t fix stupid
Carnhole and his swallowers ya can’t fix stupid
Carnhole and his swallowers, ya can’t fix stupid
This is what the long Harper/Poilievre years have given us. We thank Carney for digging us out of the hole. The sun is shining again in Canada!
I used to be the village idiot now I’m the village idiot trainer !!!
Liberal Party of Canada: Careful, Managed, Decline. Wiping out the retirement funds to pay the tax bill! Wonderfully sustainable, Carney. Canada is so broken.
This is only delaying the economic collapse. When people have burned through the equity in their homes and their savings there is nothing left. Once we get there, then we will see the economic collapse that has been inevitable under Carney and the Liberals.
And after they are fully broke, they squawk to the government and demand that people still with savings be plundered to keep them the life style they want.
The proceeding article should be sent to the PM, perhaps he doesn’t understand finance???????
The Liberal plan seems to be coming together nicely
I blame PP that Carney can’t keep his promises to Canadians regarding grocery prices
Sounds the rest of the provinces need to get their elbows up and vote liberal in the next election! What gets me is this mentality, and how we can send money to other countries for aid and pet projects, but when Canadians need help there is nothing. We’re not even allowed to speak out or defend our own properties anymore.
Thats the carney economy
But but elbows up
As most sensible people predicted the Liberal mismanagement of our country had to come to fruition at some point.
Ii years and counting of scandals & failures if you think you’re standard of living in Canada improved during the Liberal reign give your head a shake preferably with you’re elbows in the upward position.
The fact that the Canadian government cant afford to pay its bills and as a result has accumulated $1 trillion plus in debt has a follow on effect