Many Canadians consider turning to part-time jobs if finances worsen, new survey says
A new Consumer Debt Report by the Canadian Counselling Society has found that many Canadians are pessimistic about their 2023 finances.
“It is no longer that it's a certain segment feeling the pinch, everyone is feeling the pinch" Anne Arbour, Director of Strategic Partnerships with the Credit Counselling Society, told CTV News Toronto.
82 per cent of Canadians surveyed said spending on essential goods is the main cause of their worsening finances and 63 per cent said they plan to make cutbacks to their expenses, especially on food.
"We all need groceries, we all need gas or bus money and those costs are going up. So it's not as simple as not taking a holiday, it has to do with buying the essentials that we all need," Arbour said.
The survey also found 42 per cent of those asked have experienced an increase in debt in the past year and that 35 per cent would consider getting a part-time job if things get worse.
For companies that deal with debt, this doesn’t come as a surprise – inflation is increasing and many people have not seen their income match those increases.
It’s being called a perfect storm of inflation, rising interest rates and incomes not keeping up, and it’s putting pressure on many families’ finances.
Many debt collection companies took a break from collecting during the pandemic, but have since resumed and now some are seeking repayment of debts, pushing some consumers into a precarious financial situation.
“Creditors are saying the pandemic is over and they want to collect what they are owed and some are being quite aggressive about it," Laurie Campbell, Director of Client Financial Wellness with Bromwich & Smith, a licenced insolvency trustee, said.
Campbell said that bankruptcies and consumer proposals are at their highest level since March 2020.
“We are seeing a steady increase in insolvencies and I predict over the next 6 to 12 months, the increases will continue," she said.
The survey also found, while many people have savings to fall back on if they need extra money, some consumers are forced to use credit cards, borrow from banks and other institutions and even ask friends and family.
Anyone feeling overwhelmed by their financial situation is urged to reach out for help.
"To understand you are not alone and there are resources out there whether it's a not-for-profit credit counselling agency or whether it's your financial institution or a trusted friend," Arbour said.
CTVNews.ca Top Stories
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Town of Fort Nelson, B.C., ordered to evacuate due to wildfire
The entire town of Fort Nelson, B.C., as well as the nearby Fort Nelson First Nation, has been ordered to evacuate due to an out-of-control wildfire.
Bouchard lifts Edmonton Oilers to 4-3 overtime win over Canucks in Game 2
Evan Bouchard scored 5:38 into overtime and the Edmonton Oilers bounced back for a 4-3 win over the Vancouver Canucks in the second round of the Stanley Cup playoffs on Friday.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.