According to a recent survey conducted by Equifax Canada, which included responses from over 1,500 participants, 25 percent of Canadians expect to make only the minimum payment on their credit card bills each month. This growing trend points to greater difficulties in managing household budgets. It reflects the increasing financial strain being felt nationwide. The survey results show shifting patterns in how individuals are handling their financial responsibilities. Many households are struggling to balance their current expenses with their long-term financial stability.
The data also reveals that 29 percent of respondents are using a mix of credit and savings to cover essential living expenses. This includes groceries, utilities, and other daily costs. This number has nearly doubled compared to what participants were doing just a year ago. At the same time, 35 percent of those surveyed have cut back on contributions to their long-term savings. This includes investments and education funds. Additionally, 32 percent are reducing spending on groceries and utilities in an effort to manage their finances more effectively. This indicates the growing impact of everyday costs on personal budgets.
Families and younger adults under more strain
Families with children are facing even greater financial challenges than those without. The survey found that 51 percent of those with children report spending more than they did a year ago. This is compared to 35 percent of households without children. These families are also more likely to use credit for essential expenses. Forty-two percent do so, and to expect making only minimum monthly payments on their credit cards. Thirty-three percent do so. The added financial burden includes concerns about supporting extended family. This includes children’s education and the needs of aging parents. Forty-five percent of families report this compared to just 18 percent of those without children.
Similarly, Canadians under the age of 55 are showing more signs of financial pressure. This is compared to older age groups. This group is more likely to take on additional credit. They are less likely to save for long-term goals. Many in this demographic are borrowing more to cover their basic living costs. Fewer individuals are opening new credit cards or taking out loans to manage their situations. The survey clearly shows that younger adults are grappling with a combination of rising living expenses and reduced confidence in their financial futures. This contributes to a more fragile financial landscape.
Savings eroded, confidence wanes
Savings accounts are being drawn upon by 23 percent of those surveyed, as they are forced to use their reserves to meet daily expenses. With 44 percent now worried they are not saving enough for retirement and 41 percent anxious about unforeseen emergency expenses, many Canadians are experiencing a deepening sense of financial uncertainty. These concerns underscore the growing tension between short-term survival and long-term stability, as essential savings are used to cover immediate costs, leaving fewer resources for the future.
Only 23 percent of respondents feel more confident in their financial situations compared to a year ago, while 29 percent report feeling less confident. Nearly half (47 percent) say they feel their financial status has remained unchanged, highlighting the lack of progress or improvement for the majority of Canadians. These findings suggest that the overall confidence in financial planning is on a downward trend, with many individuals uncertain about how to regain stability or build a better financial future.
Julie Kuzmic, head of Consumer Advocacy and Compliance at Equifax Canada, warned that making only the minimum credit card payments can trap individuals in a cycle of debt, significantly lengthening the time it takes to repay balances and increasing interest costs. She advised those in this situation to carefully review their expenses, prioritize bill payments, and consult with lenders or certified credit counselors to explore available options. Taking proactive steps can help prevent further financial setbacks and provide a clearer path toward stability.
Lenders brace for more cautious borrowing behavior
The ongoing economic uncertainty is leading consumers to adopt more cautious approaches when managing their finances. Sixty percent of those surveyed are actively avoiding taking on any new debt, while 13 percent are borrowing more to cover basic living costs. In contrast, only 8 percent of respondents are opening new credit cards or taking out loans to manage their financial needs. These trends suggest that many Canadians are adopting more conservative behaviors in response to rising living expenses and economic unpredictability.
Equifax Canada highlighted its role in the financial ecosystem by emphasizing how it provides detailed data on these evolving spending and borrowing behaviors. The insights gathered help lenders better understand how borrowers are adapting to rising living costs and unpredictable economic conditions. As an essential partner in Canada’s financial landscape, Equifax supports financial institutions in making informed decisions that ultimately benefit consumers by helping them navigate complex economic environments more effectively.