Included in this are individuals who said they increased their emergency fund savings (20%), reduced their retirement savings (14%), or expedited their debt repayment (15%) over the previous three months.
Many customers predict higher spending on bills, healthcare, and digital purchases soon. Canadians also voiced growing concern about their capacity to pay their expenses, with 28% saying they won’t be able to fully repay their present debts or loans.
“Canadians came out of the depths of the pandemic in relatively good financial shape, but we are starting to see some cracks in consumers’ financial confidence,” said Matt Fabian, director of financial services research and consulting at TransUnion.
“Despite being bullish about their current household finances, Canadians are feeling less confident about their financial outlook and ability to keep up with their bills. Concerns around increases in the cost of living, fueled by rising inflation and interest rates, are shifting spending and saving behaviors as Canadians brace for what’s ahead,” Fabian added.
Although Canadians are optimistic about their current financial condition and expected future income, they are growing more worried about their financial prospects.
