Cost of living: many households are struggling to make ends meet

Cost of living: many households are struggling to make ends meet

Debt continues to weigh heavily on the finances of many Canadians, as more and more households struggle to make ends meet.

According to a recent report published by Equifax, insolvency has now reached its highest level since 2009. Overall consumer debt in Canada continues to rise, and many people are having difficulty paying their debts on time.

Consumer debts, such as credit cards and personal loans, are also increasing. The cost of housing, rising food prices, and the general increase in the cost of living are forcing many families to rethink their spending habits.

Organizations like Option consommateurs note that many households have already cut their expenses to the bare minimum. Some are buying more discounted or store‑brand products, while others are reducing outings or even certain essential expenses in order to afford their housing.

The report does highlight a few encouraging signs, however. Consumers appear to be becoming more cautious with their finances. Holiday spending has decreased, and more people are now paying off their credit card balance in full each month.

Despite this, experts remind us that financial pressure remains very present for a large portion of the Canadian population.