Inflation is a top-of-mind concern for Canadians and most are not optimistic about their household finances. Those troublesome findings come out of the latest Consumer Pulse Survey from credit monitoring firm TransUnion.
The survey, which covers the second quarter of 2024, suggests 58% of Canadians are concerned about the state of their finances over the next 12 months. Almost half, 46%, say their household finances are worse than planned at this point in 2024, a four percentage-point increase over this time last year.
Nearly 80% of those surveyed said their wages have grown or, at least, stayed the same. Statistics Canada reports that wages grew by 5.1% in May. Despite that, 57% of the respondents to the TransUnion survey say their wages are not keeping up with inflation which is currently running at 2.9%.
Canadians are making adjustments in an effort to ease their concerns about the cost of living. Fifty-seven percent say they have cut back on discretionary spending. A very small number, 1.3%, are making only the minimum payments on their credit cards while those who say they paid down debt faster in the second quarter rose by four percentage points over Q1.
The on-going prospect of declining interest rates has 27% of respondents considering taking on more debt. Of those, 69% say they will apply for a new credit card or increase the limit on an existing card. Others plan to: refinance their mortgage or home loan (17%); get a new mortgage (15%); take out a new home equity line of credit (11%).