Montreal, ON – As Black Friday kicks off the holiday shopping season, Canadians are feeling the pinch. A new survey by CPA Canada and BDO Debt Solutions reveals that a staggering 94% of Canadians anticipate financial stress due to holiday spending.
Despite many planning to cut back, the allure of Black Friday deals is pushing consumers towards credit cards. Over half (56%) of respondents admit they’ll rely on credit for their purchases, raising concerns about post-holiday debt.
“Using credit cards for holiday shopping can provide temporary relief, but it can lead to a bigger problem if balances aren’t paid off quickly,” warns Nancy Snedden, President of BDO Debt Solutions.
Key Survey Findings:
- Widespread Financial Anxiety: 94% of Canadians expect financial stress this holiday season.
- Credit Card Dependence: 56% plan to use credit cards for holiday purchases.
- Overspending Concerns: 18% admit they are likely to overspend their budget.
- Generational Divide: Millennials and Gen Z report the highest levels of financial anxiety.
- Budgeting for Less: Canadians plan to spend an average of $595 on gifts, down from $645 in 2023.
- Charitable Giving Declines: Only 24% plan to donate to charity, compared to 30% last year.
- Travel Costs Soar: While 57% are forgoing holiday travel, those who do travel expect to spend 33% more than last year.
Experts Urge Caution
“The holiday season, meant to be a time of joy and generosity, is becoming a source of significant anxiety for many Canadians,” says Li Zhang of CPA Canada. “With the rising cost of living, it’s not surprising that people are struggling.”
The survey highlights the need for careful budgeting and responsible spending during the holiday season. Experts advise creating a realistic budget, tracking expenses, and exploring alternatives to credit card reliance.
By taking proactive steps to manage finances, Canadians can enjoy the holidays without the added burden of overwhelming debt in the new year.
