“Consumers were already feeling the strain of increased day to day expenses,” explains Peta Wales, President & CEO of the Credit Counselling Society. “Then, as additional information about potential tariffs emerged in the weeks leading up to President Trump’s inauguration, the likelihood of price increases and even the potential for job losses, only heightened feelings of anxiety and stress.”
More than half of respondents (54%) said they are concerned about their debts, with 84% of those whose debt has increased over the past year saying they are anxious about it.
But while 27% admit they have screamed in frustration about their debt, 57% have taken the ostrich approach of not reacting at all to what they owe.
“Unfortunately, we continue to see a trend of Canadians normalizing debt with a focus on only addressing their minimum payments,” added Wales. ” With record-high debt levels, consumers are grappling with the rising cost of living, and credit cards – which were once used primarily for emergencies – are now being used to carry month over month balances. Add on the prospect of tariff induced price increases or reduced income from layoffs, and many are left feeling numb and overwhelmed.”
For some, debt fatigue has set in, characterized by behaviour such as ignoring bills, delaying or deferring payments, and avoiding creditor communication.
