Poll shows plans to spend less on holiday gifts, deepening debt concerns, and increased protection efforts
Black Friday is approaching, but it doesn’t seem as if Canadians are as excited to fill up their online shopping carts this holiday season.
In a newly released survey of Canadians conducted by Equifax Canada, 55% said they will be spending less on holiday gifts this year. “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,” the firm said in a statement.
A more granular look at the findings revealed that women were more likely than men to say they’d be spending significantly less this year (61% of women vs. 48% of men).
Plans to rein in spending were also more common among Canadians under 55 years old, who said they were already carrying too much debt and had a lot of anxiety about their current debt levels. Respondents between 35 and 54 years old, in particular, showed the most concern about their current level of debt (58% vs. 46% for the general population) as well as the most anxiety (49% vs. 39%).
“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.
When asked how long it takes for them to catch up on their holiday spending, a little more than a third (36%) said it takes them at least a month. Adding to the concern about Canadians’ debt obligations is the Q2 Consumer Credit Trends Report finding that consumers were missing monthly payments at higher rates compared to last year. A similar trend was found with respect to bankruptcies, with the worst year-over-year increases in 90+ day delinquency rates observed in Newfoundland (+11%), Alberta (+7.9%), and Ontario (+7.8%).
“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,” Kuzmic said.
Most survey participants reported working to achieve financial fitness for the holidays, with 58% saying they’re planning to prepare a holiday budget.
Another positive, according to the survey, comes from consumers’ increased vigilance against identity theft. While 64% of respondents to a similar poll three years ago said they felt vulnerable to fraudsters and identity thieves, only 45% said the same this year.
The decreased sense of vulnerability came as more Canadians take steps to protect their personal and financial information. Those include reviewing their credit card statements for fraudulent activity (85% in 2019 vs. 79% in 2016), checking their credit reports (60% vs. 28%), limiting their online purchases (60% vs. 57%), avoiding the use of public Wi-Fi (52% vs. 47%), and updating their security passwords (51% vs. 44%).
“It’s certainly encouraging to see more people taking precautionary steps to help stop identity theft and fraud before it happens,” Kuzmic said.
