TransUnion report highlights ongoing financial strain for Canadians, especially Millennials and Gen X.

THUNDER BAY, ON – Rising inflation and the lingering effects of high interest rates continue to weigh heavily on Canadian households, according to TransUnion’s Q4 2024 Consumer Pulse study.

Despite recent interest rate cuts, 26% of Canadians anticipate being unable to pay at least one bill or loan in full, with Millennials feeling the pinch most acutely.

Key findings include:

• Millennial Debt Pressure: Millennials hold $911 billion in debt, the largest of any age group, with 35% expecting to miss at least one payment.
• Gen X Concerns: 51% of Gen X report financial strains as they approach retirement.
• Housing Woes: 57% of Canadians cite high home prices as a major concern, with only 14% planning to secure a new mortgage in the next year.
• Economic Stagnation: 63% of Canadians do not expect their household income to increase in the next six months.

Debt and Credit Trends

Despite financial stress, 22% of Canadians plan to take on or refinance debt within the next year, with 43% of them eyeing new credit cards. Gen Z leads this trend, with 34% planning to apply for credit in 2025.

Housing Market Pressures

High interest rates and housing prices continue to deter home purchases. Only 14% of Canadians plan to buy a home in the next year, and 76% say they are unlikely to make such a purchase.

Cutting Back to Cope

To ease financial pressures, many Canadians report reducing discretionary spending. Dining out, clothing, and entertainment are among the top areas of reduced expenditure.

Hope Ahead?

Experts suggest that continued rate cuts could offer relief for household budgets in 2025. However, with the majority of Canadians not anticipating income increases, financial stress is expected to persist.