More Canadians Planning to Spend Less this Holiday Season
November 04 2019 - 6:00AM
In advance of Black Friday more than half of Canadians (55 per
cent) say they will be spending less on holiday gifts this year,
according to a recent survey* by Equifax Canada. This comes
following Equifax Canada’s Q2 Consumer Credit Trends Report, which
showed total debt per consumer rose by +1.9 per cent at the end of
the second quarter in 2019.
According to the survey, women were more likely to say they
would be spending significantly less at 61 per cent versus 48 per
cent of men. Canadians under the age of 55 were significantly more
likely to agree they will limit their spending because they are
already carrying too much debt, and they have a lot of anxiety
about their current level of debt. Survey respondents between
35-44 had the most concern about current debt levels (58 per cent
compared to 46 per cent for the general population) and the most
anxiety (49 per cent compared to 39 per cent for the general
population). The majority of people surveyed, however, are
working towards being financially fit for the holidays with 58 per
cent of them planning to prepare a holiday budget.
“These survey results illustrate that many people are feeling
the pinch and plan to rein in their holiday purchases this year,”
said Julie Kuzmic, Equifax Canada’s Director of Consumer Advocacy.
“If there’s a silver lining here, it’s the fact that most Canadians
remain conscious of their debt obligations and want to avoid adding
too much debt heading into the new year. This is not surprising, as
we have seen higher interest rates impacting consumers over the
last 18 months. Bankruptcies have also jumped significantly and
even credit card spending growth has tailed off in 2019.”
When asked how long it would take to catch-up on their holiday
spending, one-in-three (36 per cent) of survey respondents said it
takes them a month or more. As a further indication of where
Canadians stand with their debt obligations, Equifax Canada’s Q2
Consumer Credit Trends Report found the rate at which consumers
were missing monthly payments was higher and bankruptcies also
continued to rise as compared to last year. Newfoundland
(+11%), Alberta (+7.9%) and Ontario (+7.8%) led the way higher in
90+ day delinquency rates in a year-over-year comparison.
FINANCIAL LITERACY AND PREVENTING ID THEFT
Beyond examining concerns about debt, Equifax also asked survey
respondents about their financial literacy and the steps they have
taken to avoid becoming a victim of identity theft. The results
indicate Canadians appear to be taking the threat more seriously.
In a similar survey conducted three years ago, 64 per cent
indicated they feel vulnerable to fraudsters and identity thieves.
This number has significantly dropped to 45 per cent in 2019 likely
owing to the increased steps consumers have taken to help protect
their personal data:
2019 |
Steps Taken by Consumers |
2016 |
85 per cent |
Review credit card statements for fraudulent activity |
79 per cent |
60 per cent |
Check my credit report |
28 per cent |
60 per cent |
Limit purchases made online |
57 per cent |
52 per cent |
Avoid using public Wi-Fi |
47 per cent |
51 per cent |
Updated security passwords |
44 per cent |
“Identity thieves and fraudsters never take a holiday,” said
Kuzmic. “It’s certainly encouraging to see more people taking
precautionary steps to help stop identity theft and fraud before it
happens. This includes checking your credit report, which
once again we are pleased to see more people doing compared to
three short years ago.”
CREDIT SCORE(S) TO HELP ASSESS FINANCIAL WELLNESS
In addition to checking their credit reports, survey respondents
indicated they are also obtaining their credit scores. Almost half
(48 per cent) said they obtain their score at least annually, while
three-in-ten (28 per cent) said they obtain their scores
monthly. Younger adults (18-34) are significantly more likely
to check their credit scores monthly versus those over the age of
45 (36 per cent versus 25 per cent).
“Checking your credit reports and obtaining credit scores is a
good way to assess the credit aspect of your financial well being,”
Kuzmic added. “It’s important for people to remember that
there have always been a variety of credit scores in the
marketplace, and the situation is no different today. Different
algorithms and weightings in the score calculations mean that you
might see your credit scores varying from one source to the next.
The bottom line is knowing your scores can serve you well in your
financial planning.”
To learn more about how credit works, consumers are encouraged
to visit Equifax Canada’s education hub. The site offers insights
on how different actions can affect their credit scores and
provides resources to improve their financial literacy.
*An online survey of 1,566 Canadians was completed between
September 20-23, 2019, using Leger’s online panel. The margin of
error for this study was +/-2.5%, 19 times out of 20.
About EquifaxEquifax is a global data,
analytics, and technology company and believes knowledge drives
progress. The Company blends unique data, analytics, and technology
with a passion for serving customers globally, to create insights
that power decisions to move people forward. Headquartered in
Atlanta, Equifax operates or has investments in 24 countries in
North America, Central and South America, Europe and the Asia
Pacific region. It is a member of Standard & Poor's (S&P)
500® Index, and its common stock is traded on the New York Stock
Exchange (NYSE) under the symbol EFX. Equifax employs approximately
11,000 employees worldwide. For more information, visit Equifax.ca
and follow the company’s news on Twitter and LinkedIn.
Media Contacts:
Andrew FindlaterSELECT Public Relationsafindlater@selectpr.ca(416)
659-1197 |
Heather AggarwalEquifax CanadaMediaRelationsCanada@equifax.com
(416) 227-8711 |
An infographic accompanying this announcement is available
at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b26191db-dc5c-491a-958d-a6867e12b14f
Equifax (NYSE:EFX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Equifax (NYSE:EFX)
Historical Stock Chart
From Apr 2023 to Apr 2024