Holidays only added to Canadians’ already considerable fiscal burdens

Holidays only added to Canadians’ already considerable fiscal burdens

Holidays only added to Canadians’ already considerable fiscal burdens

The bitter sting of post-holiday spending is adding considerable anxiety to Canadians, a large segment of which is already labouring under debt to begin with, according to insolvency practice MNP Ltd.

In its recent poll, MNP found that around 43% of Canadians are dreading the arrival of holiday spending bills this month, while 41% expressed regret over how much they spent over the past year, on top of their existing debt loads. Meanwhile, 16% admitted to being enticed by sales during occasions like Black Friday or Boxing Day.

“We’re bombarded by a flurry of sales and ‘buy now, pay later’ offers but what might seem like a small purchase or look like a great deal on Boxing Day isn’t really a bargain if you end up carrying them on credit,” MNP Ltd. president Grant Bazian said.

Read more: Insolvency increasingly weighing upon Canadian households

Other concerning financial habits that a significant number of Canadians are cultivating include paying only the minimum balance on credit cards (21%) or lines of credit (15%), borrowing money that they are unable to pay back quickly (14%), and purchasing on credit without paying it off right away (12%).

“Pressure mounts right before the holidays and that’s when people are more likely to borrow money from a payday lender or really overextend themselves on credit cards. The extremely high interest rates on these types of credit can trap them in a cycle of debt that will be impossible to get out of,” Bazian noted.