Canadians continue to face financial strain amid the heightened cost of living, according to the latest report from Equifax, which shows that younger Canadians generally struggle more than older Canadians.
Equifax’s Spending Survey, conducted by Leger and released Thursday, included the responses of 1,532 adult Canadians from July 17 to July 19.
Forty per cent of all respondents said they were spending more than a year ago, while just 18 per cent said they were spending less. Forty-two per cent of those spending more identified as being younger than 55, while 36 per cent were 55 or older.
Respondents younger than 55 were also more likely than older Canadians to experience financial challenges across nearly every category, Equifax says.
Younger Canadians are more likely to struggle to find stable employment than most older Canadians, with youth unemployment data typically higher than the national average.
This also comes after MNP reported last month that many Canadians were facing a form of “lifestyle shrinkflation” amid the high cost of living.
In that report, three in five Canadians (61 per cent) said at least half of their income is already committed to bills, debt payments and regular expenses before it arrives, while around one-third (32 per cent) said most of their paycheque is already committed before it arrives.
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A large portion of respondents to the Equifax survey say they are also using their savings, credit cards or other lines of credit to cover everyday expenses, with many piling up debt as they go.
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Nearly a quarter (23 per cent) say they are using savings to pay for day-to-day needs, while 20 per cent say they relied on credit more than last year. Thirteen per cent said they were borrowing money elsewhere to cover basic living expenses.
“The results point to mounting financial pressure for many households,” Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said in a release.
“When these pressures begin to overlap, households can lose financial flexibility quickly.”
Twenty-nine per cent said they were using credit to pay for essentials more than they were a year ago, and the same amount said they felt less confident in their ability to manage financial demands than a year earlier.
Equifax says Canadians younger than 55 were more likely to use credit for living expenses than older respondents.
At the same time, many respondents say paying down debt is also proving difficult, including on lines of credit and credit cards.
Twenty-five per cent said they expect they will only be able to make minimum monthly debt payments, while seven per cent believe they are likely to fall behind on debt payments altogether.
Equifax says those who were more likely to make only minimum payments on debt included those younger than 55, those who have kids, or both. Meanwhile, those age 55 or older were more likely to pay their balance in full.
“Financial pressure often builds gradually, and making only the minimum payment can sometimes feel like a way to manage through a difficult month,” Julie Kuzmic, head of consumer advocacy and compliance at Equifax Canada, said in the release.
“However, balances can take much longer to repay and cost considerably more in interest.”
Many Canadians are cutting back where they can to help keep up with the heightened cost of living and manage debt levels, the survey report shows.
About two-thirds (67 per cent) of respondents said they reduced spending on entertainment and leisure, while 40 per cent spent less on personal care. Equifax says women were the most likely to reduce spending in these categories.
With these financial challenges in the near term, the survey also suggests many see saving for the future as a daunting goal.
Nearly half of all respondents (44 per cent) said they are worried they won’t save enough for retirement, 35 per cent are concerned about affording a major purchase, such as a down payment on a home, and 26 per cent worry they won’t be able to financially support family members, including their children’s education or aging parents.
“Anyone seeing their balances continually rise with little hope at repayment should review payment obligations, prioritize due dates and explore options with their lenders or a reputable credit counsellor before their financial situation limits their options,” Kuzmic said.
— with a file from Global News’ Uday Rana
© 2026 Global News, a division of Corus Entertainment Inc.
