To adjust to inflation and rising prices, Canadians are cutting back on spending, adopting better household habits and considering extra income.
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That’s according to a new survey by BDO Debt Solutions, which examines affordability and debt while highlighting what Canadians are doing to respond to the affordability crisis.
According to the survey, 56% of respondents believe they need to cut non-essential spending to keep up with inflation, and 30% feel so overwhelmed with debt they don’t know what to do.
“Inflation has made paying off debt even more difficult, and people are showing the need for a coordinated approach that combines budgeting, debt management and, where possible, diversifying their sources of income,” he said. said Ronald Gagnon, senior vice president of BDO Debt Solutions.
Leger’s online survey of more than 1,500 Canadians also found that more than a third of Canadians plan to reduce their debt through better household habits in the coming year.
That number rises to 47% of respondents aged 18-34.
Reducing spending is the number one strategy for dealing with inflation, but a large majority of low-income households (under $40,000) cut not only non-essential expenses (67%), but also some essential items like food, clothing, and Utility Services (58%).
Almost 31% of Canadians would consider finding a part-time job to gain financial independence, make a living (26%) and pay off debt (26%).
About a quarter (24%) of Canadians aged 18-34 have already expanded their sources of income by working part-time to keep up with inflation.
“Debt reduction is one of the best ways to deal with the affordability crisis,” Mr Gagnon added. But there’s a catch: most people are unaware of debt management strategies. Debt is still a taboo subject and often not discussed with friends and family.