A recent survey conducted by BDO Debt Solutions has shed light on the growing financial challenges faced by Canadians due to inflationary pressures.

The study found that half of Canadians are cutting back on living expenses to cope with the higher costs of living, while a significant portion feels overwhelmed by their debt load.

Over one-third of Canadians plan to reduce their debt through better budgeting habits, while a significant majority of lower-income households are cutting back on both non-essentials and essentials.

Yvette Power, BDO Manager for St. John’s, sees it as concerning.

She says people are cutting back on food, utilities, skipping bill payments, skipping utility payments, and some are relying on using their savings which puts their financial future at risk.

Surprisingly, many Canadians are unfamiliar with available debt management strategies. The survey underscores the importance of financial literacy and awareness of options to manage debt effectively.