More Than Half of Canadians Struggling to Meet Financial Commitments: Federal Memo

A new document from the Financial Consumer Agency of Canada (FCAC) suggests that more Canadians owe more money than ever before and use debt to survive. Over half of Canadians (53%) report struggling to keep up with financial commitments, and millions have no financial margin for error. Household debt trends have worsened since the pandemic, with a quarter of Canadians spending more than they earn, 50 percent using savings to cope with expenses, and 33 percent borrowing to cover regular expenses.

• Over half of Canadians (53%) report struggling to keep up with financial commitments.
• Millions of Canadians have “no margin for error” in case of a financial crisis.
• Household debt trends have worsened since the pandemic.
• One-quarter of Canadians spend more than they earn.
• 50 percent of Canadians used savings over the past year to cope with expenses.
• 33 percent of Canadians borrowed money to cover regular expenses.