Latest news with #PetaWales
Cision Canada
4 days ago
- Business
- Cision Canada
Kids Are Out, Costs Are Up, and Canadians Face Summer Spending Pressures Ahead of Rate Announcement
Credit Counselling Society urges Canadians to prepare for summer spending pressures amid a new tone in Ottawa and upcoming rate announcement. NEW WESTMINSTER, BC, June 2, 2025 /CNW/ - With new economic and political conversations taking shape in Ottawa, including Prime Minister Mark Carney, a former Governor of the Bank of Canada, stepping into the spotlight, many Canadians are watching the upcoming interest rate announcement on June 5 for signs of change. But despite shifting signals at the top, the reality for most households remains the same: life is expensive, and this summer won't be any different. "Summer comes with its own set of financial pressures. School is out, the kids need care or activities, and many people feel the pull to travel or make the most of their holiday time," explains Peta Wales, President and CEO of the Credit Counselling Society (CCS). "A rate cut might help those with a variable mortgage or home equity line of credit, but it will not make June, July, and August much cheaper." CCS sees firsthand how Canadians approach this seasonal strain. These findings come from their latest report on Canadian household finances, available here: "Copers" do their best to budget but feel increasingly stretched. Nearly three-quarters of Canadians say spending more on essentials like food, housing, and transportation is a top reason their financial situation has worsened. "Strugglers" rely on credit to make ends meet. In fact, 36 per cent of Canadians reported their debt increased in the past year, and 67 per cent of those with more debt are paying little more than the minimum required, if anything extra at all. "Avoiders" delay dealing with financial stress. One-in-four Canadians only took action on their debt after it reached a critical stage or did not take any action at all. Recognizing that Canadians manage financial stress in different ways, CCS offers guidance tailored to each group to help ease summer spending challenges: For copers who are trying hard to budget but still seem like they are coming up short, summer can make things worse as travel, home renovations, and special events add to the pressure. Regular budget reviews help stay on top of fluctuating costs like increased utility bills or seasonal spending, while also identifying opportunities for savings that can make summer more affordable. For strugglers who rely on credit cards or loans to cover everyday expenses, tracking all spending carefully can help identify small adjustments that add up—especially with kids at home and summer activities in full swing. Prioritizing essentials like food and housing, and exploring local community programs or free events, can help to not sacrifice fun or adding to credit stress. Seeking free credit counselling assistance to tackle your debt is equally important to prevent debt from spiraling—especially before the fall and winter spending seasons arrives. For avoiders who feel overwhelmed and delay dealing with debt, summer can bring added guilt or isolation, especially if they are unable to participate in seasonal activities with friends or family. Reaching out for support now can ease that emotional and financial load. CCS provides confidential, non-judgmental help to create manageable plans tailored to each situation. Early intervention can prevent debt from reaching a critical point and improve peace of mind, before summer stress turns into fall regret. "This might be the first rate announcement under a new political lens, but the financial pressure people feel day-to-day has not relented" states Isaiah Chan, Vice President of Programs and Services at CCS. "Regardless if rates go down or stay the same, the average person is still facing the same pressures at the grocery store, gas pump, and on their summer calendar." "The good news is that no one has to manage this on their own," adds Mason Cox, Director of Counselling at CCS. "Whether it's summer spending or year-round financial stress, we're here to help you build a plan that works, without judgment and without pressure." To speak with a certified credit counsellor, visit or call 1-888-527-8999. About the Credit Counselling Society The Credit Counselling Society is a non-profit organization dedicated to helping consumers manage their money and debt better. CCS provides free and confidential credit counselling, objective debt repayment options, budgeting assistance, and financial education. Visit SOURCE Credit Counselling Society of BC
Yahoo
4 days ago
- Business
- Yahoo
Kids Are Out, Costs Are Up, and Canadians Face Summer Spending Pressures Ahead of Rate Announcement
Credit Counselling Society urges Canadians to prepare for summer spending pressures amid a new tone in Ottawa and upcoming rate announcement. NEW WESTMINSTER, BC, June 2, 2025 /CNW/ - With new economic and political conversations taking shape in Ottawa, including Prime Minister Mark Carney, a former Governor of the Bank of Canada, stepping into the spotlight, many Canadians are watching the upcoming interest rate announcement on June 5 for signs of change. But despite shifting signals at the top, the reality for most households remains the same: life is expensive, and this summer won't be any different. "Summer comes with its own set of financial pressures. School is out, the kids need care or activities, and many people feel the pull to travel or make the most of their holiday time," explains Peta Wales, President and CEO of the Credit Counselling Society (CCS). "A rate cut might help those with a variable mortgage or home equity line of credit, but it will not make June, July, and August much cheaper." CCS sees firsthand how Canadians approach this seasonal strain. These findings come from their latest report on Canadian household finances, available here: "Copers" do their best to budget but feel increasingly stretched. Nearly three-quarters of Canadians say spending more on essentials like food, housing, and transportation is a top reason their financial situation has worsened. "Strugglers" rely on credit to make ends meet. In fact, 36 per cent of Canadians reported their debt increased in the past year, and 67 per cent of those with more debt are paying little more than the minimum required, if anything extra at all. "Avoiders" delay dealing with financial stress. One-in-four Canadians only took action on their debt after it reached a critical stage or did not take any action at all. Recognizing that Canadians manage financial stress in different ways, CCS offers guidance tailored to each group to help ease summer spending challenges: For copers who are trying hard to budget but still seem like they are coming up short, summer can make things worse as travel, home renovations, and special events add to the pressure. Regular budget reviews help stay on top of fluctuating costs like increased utility bills or seasonal spending, while also identifying opportunities for savings that can make summer more affordable. For strugglers who rely on credit cards or loans to cover everyday expenses, tracking all spending carefully can help identify small adjustments that add up—especially with kids at home and summer activities in full swing. Prioritizing essentials like food and housing, and exploring local community programs or free events, can help to not sacrifice fun or adding to credit stress. Seeking free credit counselling assistance to tackle your debt is equally important to prevent debt from spiraling—especially before the fall and winter spending seasons arrives. For avoiders who feel overwhelmed and delay dealing with debt, summer can bring added guilt or isolation, especially if they are unable to participate in seasonal activities with friends or family. Reaching out for support now can ease that emotional and financial load. CCS provides confidential, non-judgmental help to create manageable plans tailored to each situation. Early intervention can prevent debt from reaching a critical point and improve peace of mind, before summer stress turns into fall regret. "This might be the first rate announcement under a new political lens, but the financial pressure people feel day-to-day has not relented" states Isaiah Chan, Vice President of Programs and Services at CCS. "Regardless if rates go down or stay the same, the average person is still facing the same pressures at the grocery store, gas pump, and on their summer calendar." "The good news is that no one has to manage this on their own," adds Mason Cox, Director of Counselling at CCS. "Whether it's summer spending or year-round financial stress, we're here to help you build a plan that works, without judgment and without pressure." To speak with a certified credit counsellor, visit or call 1-888-527-8999. About the Credit Counselling SocietyThe Credit Counselling Society is a non-profit organization dedicated to helping consumers manage their money and debt better. CCS provides free and confidential credit counselling, objective debt repayment options, budgeting assistance, and financial education. Visit SOURCE Credit Counselling Society of BC View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hamilton Spectator
13-05-2025
- Business
- Hamilton Spectator
‘Prepare for a long recession and hope for a short one': How to financially prepare for economic downturn and job loss
Canada is not in a recession — not yet anyway — but people should be prepared for one, said Peta Wales, president and CEO of Credit Counselling Society, a non-profit organization offering accredited debt counselling. The good news is we're forewarned ahead of the looming economic turbulence, so hopefully people are taking action now, while they're still employed, to prepare for it, Wales said. 'I would say that's a little bit different from the past recessions, like the COVID-induced recession of 2020 or even the Great Recession of 2008. I don't think those recessions had the same level of predictability and forewarning,' she said. Another thing that's different this time around is that the looming potential recession is driven by geopolitics, not as part of a natural economic cycle, meaning the economic recovery may be unpredictable. 'We don't know if this going to be a short recession or a long one, but I would say the prudent approach would be to prepare for a long recession and hope for a short one,' she said. The worst thing that could happen from being overprepared is you end up with more savings than you need and even better spending and saving habits. Being underprepared, on the other hand, may result in some hardship. 'That's why it's so critically important that people take action now because we don't know how long this recession will last. The longer runway you have to prepare, the better off you'll be,' she said. The Credit Counselling Society offers money-saving tips to help people survive a recession. While you can read the guide on the organization's website , it comes down to these five basic tips: Wales added that everyone should be taking a deep dive into their finances and making a budget. And you should be looking at your expenses from as far back as a year ago because certain costs are incurred annually or quarterly, and you may not catch them if you only look at a few months of finances. Once you've done that, you can identify the nondiscretionary expenses such as rent, utility bills, food costs, medical bills and others that must be paid, and the discretionary expenses. You can prioritize the discretionary items you want to keep and eliminate or reduce the others. Once you reduce those expenses, put that money toward an emergency fund. Your emergency fund should have three to six months' worth of income, Wales said. You should be building this emergency fund now, while you're still employed. 'Now is particularly important. We're not quite in a recession yet, but we can see it on the horizon. If you're in a role that is more directly tied to U.S. trade and the challenges that we're experiencing, your job's at risk,' she said 'So, you want to make sure you have an emergency fund built up.' People should also reallocate some of those discretionary dollars toward paying down high-interest debt, as those payments become difficult to manage if you lose your job or end up working reduced hours. Also, don't be afraid to seek help, if you need it. Wales suggests non-profit credit counselling agencies, which can provide free counselling and walk you through dealing with your financial difficulty. 'Canadians today are stretched already, many households are already struggling with higher living costs, higher levels of debt, so preparation is key,' she said. 'We can't control what happens globally, but we can certainly control what happens in our homes, and so there really is no downside to taking a look at your finances now and preparing for what's to come.'
Yahoo
14-04-2025
- Business
- Yahoo
Bank of Canada Rate Announcement Won't Change One Thing: Financial Despair is Becoming a Family Affair
Credit Counselling Society urges Canadians to take control of their finances, regardless of interest rate news NEW WESTMINSTER, BC, April 14, 2025 /CNW/ - As the Bank of Canada prepares to announce its latest interest rate decision on April 16, many Canadians may be holding their breath for some financial relief. But whether the rate holds steady or decreases, the reality for millions of households remains the same: financial stress is at a breaking point. Debt continues to grow and the pressure of making ends meet only intensifies with rising costs, inflation, tariffs, and federal election uncertainty dominating the headlines. "In times like these, it's easy to feel overwhelmed. But when the world feels uncertain, taking control of what you can—your own finances—can bring a sense of stability," states Peta Wales, President & CEO of the Credit Counselling Society (CCS). "The news about interest rates might grab attention, but it won't solve the ongoing financial strain that so many Canadians are dealing with." The generational divide for how Canadians are coping with debt has become more apparent than ever. The financial pressures impacting consumers are felt across age groups, each facing unique challenges and decisions about how to move forward. For Canadians aged 55 or older, the financial landscape is especially uncertain—but the challenges can differ significantly within this age group. Those approaching retirement are often focused on paying down debt and hoping to retire without financial burdens. Meanwhile, those already in retirement often rely on investment income to supplement their pensions. With recent market volatility, many who are 55+ may be experiencing a drop in the income they were counting on. In addition, this age group has also seen the largest increase in average debt levels over the past couple years, according to Equifax Canada's Q4 2024 Consumer Credit Trends Report—making a challenging situation even more difficult to navigate. "If you're in this age group, you may be considering drastic options like a reverse mortgage or selling and downsizing just to stay afloat. But these decisions shouldn't be made in isolation or out of panic," explains Isaiah Chan, Vice President of Programs & Services at CCS. "There are often more options than people realize—and when you're under stress, it's even more important to get a clear picture before making big financial choices." The 18–34 age group has been among the most proactive—taking on side gigs, cutting back on spending, and doing what they can to get by. But despite their resilience, they're also the least likely to reach out for help, according to findings from CCS's 2025 Consumer Debt Report. "There's a stigma that surrounds seeking financial advice, particularly for younger people," says Anne Arbour, Director of Partnerships & Education at CCS. "But no one should feel ashamed for needing support. For those who don't know where to start, we offer webinars, online learning, and practical money tips to help people take small, manageable steps—even in the face of uncertainty like tariffs or inflation." Meanwhile, Canadians aged 35–54 are often caught in the financial crosshairs—balancing their own financial future while supporting both adult children and aging parents. Data from Equifax Canada's Q4 2024 Consumer Credit Trends Report shows that this group has seen the highest increase in non-mortgage debt delinquencies over the past two years, adding more instability to their already challenging circumstances. "The pressure to provide support for both your kids and your parents can be overwhelming," adds Chan. "Whether you're just trying to keep your household running or helping others stay afloat, the earlier you reach out for help, the more options you'll have." According to the 2025 Consumer Debt Report, 44 per cent of Canadians say rising interest rates have made it harder to manage their debt—and nearly one in four have lost sleep over it. With economic uncertainty still looming, many households haven't had the chance to recover, and for many, it feels like they're falling further behind. "Even if the Bank of Canada announces a rate decrease, it won't undo the financial pressure people have been under for the past several years," says Wales. "But this isn't just about interest rates—it's about helping people regain their sense of control and confidence. You don't need to wait for economic changes or rate adjustments. Getting expert, judgment-free support can make a meaningful difference in building a stable financial future for you and your family." About the Credit Counselling SocietyThe Credit Counselling Society is a non-profit organization dedicated to helping consumers manage their money and debt better. CCS provides free, confidential credit counselling, debt repayment options, budgeting assistance, and financial education. Visit SOURCE Credit Counselling Society of BC View original content to download multimedia: Sign in to access your portfolio
Associated Press
20-02-2025
- Business
- Associated Press
Canadians face new financial hurdles: Debt fatigue and complacency
Recent US election results rank as second largest financial concern behind increases in costs for essentials – the unending flow of tariff news intensifies the tension NEW WESTMINSTER, BC, Feb. 20, 2025 /CNW/ - Consumers with rising debt are grappling with critical financial obstacles when it comes to addressing their financial obligations. Amidst the persistence of high living costs and uncertainties stemming from recent US election results, many are struggling according to findings from the 2025 Consumer Debt Report by the Credit Counselling Society (CCS), who surveyed members of the Angus Reid Forum. The overwhelming concern for seven-in-ten Canadians (71 percent) is the increase in cost-of-living expenses, where more than half (54 percent) – the highest number since the inception of the survey five years ago – report economic factors outside of their control. 'Consumers were already feeling the strain of increased day to day expenses,' explains Peta Wales, President & CEO of the Credit Counselling Society. 'Then, as additional information about potential tariffs emerged in the weeks leading up to President Trump's inauguration, the likelihood of price increases and even the potential for job losses, only heightened feelings of anxiety and stress.' Over half of all Canadians report feeling worried or concerned (54 percent) about their debt, and the number of Canadians feeling increasingly anxious surged to a staggering four-in-five (84 percent) among those who experienced an increase in debt this past year. In fact, more than one-in-four (27 percent) who are anxious about their financial situation, revealed that they have screamed in frustration about their debt. Surprisingly however, an astonishing 57 percent of survey participants were complacent towards their debt by not reacting at all to what they owe. 'Unfortunately, we continue to see a trend of Canadians normalizing debt with a focus on only addressing their minimum payments,' states Wales. " With record-high debt levels, consumers are grappling with the rising cost of living, and credit cards - which were once used primarily for emergencies - are now being used to carry month over month balances. Add on the prospect of tariff induced price increases or reduced income from layoffs, and many are left feeling numb and overwhelmed.' Among respondents who reported experiencing an increase in debt over the past year, 54 percent revealed that it affects their mental wellbeing and for those who are uncomfortable with the amount of debt they are carrying, a full 60 percent indicated that it affects their outlook on life. Exacerbating the situation and hindering their ability to find debt relief, those who are anxious about their circumstances are almost three times as likely to be falling further behind on their debts (16 percent vs 6 percent) and are less likely to reach out for help. Ignoring bills, delaying or deferring payments, and avoiding creditor communication are all symptoms of debt fatigue. This condition, characterized by mental and emotional exhaustion due to the constant worry over debt payments and the high cost of essentials, can lead to feelings of hopelessness, complacency, and a lack of motivation to regain financial control. Debt fatigue was confirmed by survey respondents who reported being four times more likely (19 percent) to cry about their debt than communicate with their creditors (5 percent), and seven times more likely (57 percent) to have taken no action regarding their debt than to have consulted with a credit counsellor (8 percent). 'The danger with becoming complacent about your obligations is that a small shift in your circumstances – such as reduced hours at work or an increase in the cost of an essential, like gas, can suddenly make your financial situation extremely difficult to manage,' explains Isaiah Chan, VP of Programs & Services at CCS. According to the survey, half of Canadians with increased debt have recently cut back on their savings (48 percent), used credit instead of cash (50 percent), or drawn from their savings / investments (51 percent) while also cutting back on essentials like food (77 percent) and recreation (72 percent) to make ends meet. 'It's always very concerning when someone struggles to pay for their day-to-day expenses and, with savings exhausted, risks undermining any of their remaining financial stability through high levels of consumer debt,' reveals Chan. 'There comes a time when cutting back is no longer possible.' 'Waiting to take action until debts become unmanageable, can result in higher interest rates, more drastic solutions, and ultimately more stress and sleepless nights,' adds Anne Arbour, Director of Partnerships & Education at CCS. 'Taking steps early on is when someone can make the biggest impact on improving their finances and overall wellbeing.' Survey results reveal that many Canadians are actively attempting to avoid increasing debt and the resulting debt fatigue with proactive measures instead of complacency. An overwhelming 70 percent of Canadians (with increased debt this past year) cut back on essentials, 34 percent sold personal items, 12 percent changed their living arrangements, and 44 percent versus the previous high of 10 percent, reached out to a financial advisor for assistance. 'Surprisingly, of Canadians who had an increase in debt this past year,' explains Wales, 'we also saw that 44 percent took on a second job as they worked to proactively manage their higher debt load. While this was almost three times higher than the prior year, (at 16 percent), it may not remain a viable option if the economy contracts due to geopolitical circumstances.' As Canadians continue to navigate their financial challenges, amongst a backdrop of increasing economic strain, the need for timely and effective debt management solutions has never been more critical. 'When it comes to what Canadians worry about most, problems with money tops the list,' explains Arbour. 'However, consumers often suffer in silence because they are more uncomfortable talking about their debt than they are personal relationships or even struggles with physical and mental health.' 'We can't predict what the next four years will hold for us economically, politically, or financially,' concludes Arbour. 'But tariffs or no tariffs, don't let anxiety or embarrassment deter you from reaching out for the help you need. Debt fatigue is a genuine concern, and complacency is not an effective solution. Focus on what you can control to ensure financial stability and wellbeing for yourself and your family.' About The Credit Counselling Society (CCS): The Credit Counselling Society is a non-profit organization dedicated to helping consumers manage their money and debt better. CCS provides free, confidential credit counselling, debt repayment options, budgeting assistance and financial education. About Angus Reid Forum surveys: These findings are from a survey conducted by Credit Counselling Society from January 6th to 10th, 2025 among a sample of 1200 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-4.4 percentage points, 19 times out of 20.
