One-in-four Canadians cannot afford the holiday season this year

Many can't afford Christmas

A new national survey has revealed one-in-four Canadians will not be able to afford the Christmas/holiday season this year.

With the impacts of the COVID-19 pandemic, 24 per cent of Canadians from across the country are foregoing holiday celebrations. Additionally, 21 per cent say they are not confident that they will have a steady income during the next six months and 44 per cent say they are not confident that they will be able to build savings over the next year.

Looking at both scenarios, women are less confident than men, with 22 per cent saying they are uncertain if they will have a steady income and nearly half (48 per cent) saying they are not confident they will build savings. 

Looking at paying household bills and rent or mortgages in the next six months, one-in-10 say they are not confident they can. Meanwhile, 14 per cent of Canadians are not confident that they will be able to keep up with their debt payments such as credit cards, lines of credits, auto loans and more. 

“While the holiday season is undoubtedly going to look different this year, it’s not all doom and gloom, and in fact these numbers aren’t that shocking given the trying times we’re in,” says Keith Emery, co-CEO of Credit Canada.

“Nevertheless, we hope that as the economy continues to recover, Canadians’ confidence in their finances will also rebound.”

The national poll was conducted by Credit Canada and the non-profit Angus Reid Institute.

Another interesting find suggests that Canadians are waiting for their debt to disappear. 

When asked about their expectations amid these unprecedented economic times, one-in-five people expect their personal debts to disappear while one-in-10 say they will not return to work but instead rely on government supports.

“Some Canadians are waiting for a miracle, or for the government to swoop in and magically resolve their debts for them,” says Emery. “But we must realize that this is our new reality, and must ask ourselves, how to best move forward from here.”

Looking forward economically, one-in-five Canadians are not confident that their faith in the country's economy will ever be restored while one-in-four say they will never meet their goals in regards to saving money. 

Unfortunately, 12 per cent of Canadians feel as though they will never fully recover financially from the pandemic. 

“No matter what a person’s financial situation might be, it’s crucial for Canadians to be prepared as we come out of this bad dream,” says Emery. “And if you have debt, start tackling it now.”

Less than half of Canadians are confident that their faith in the country's economy will be restored while 59 per cent feel they will eventually get a good credit rating.

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