Nearly Half of Canadians say Household Finances are Worse than Anticipated as Consumer Inflation Concerns Hit Highest Level Since Q2 2022

Core Insights - The Q2 2024 TransUnion Canada Consumer Pulse study reveals a decline in financial optimism among Canadians, with 58% expressing pessimism about their household finances over the next year [6] - A significant portion of Canadians (46%) report that their household finances are worse than planned, despite 79% indicating their income has remained stable or increased [2][6] - Inflation remains a top concern, with 86% of respondents citing it as one of their top three financial worries, the highest since Q2 2022 [6] Financial Conditions - 57% of Canadians feel their income is not keeping pace with inflation, leading to increased financial strain [5][7] - 30% of Canadians expect to be unable to pay at least one of their current bills and loans in full, indicating a potential need for additional credit [10][26] - 52% of consumers plan to cut discretionary spending due to the high cost of living [5][21] Credit and Debt Trends - Over a quarter (27%) of Canadians plan to apply for new or refinance existing credit in the next year, reflecting a growing need for liquidity [6][10] - Nearly two-thirds (62%) of Canadians report that rising interest rates significantly impact their decision to apply for new credit [15] - 69% of those planning to take on more debt intend to apply for a new credit card or increase their existing credit [17] Demographic Insights - Gen X appears to be the most financially stressed demographic, with 53% reporting their household finances are worse than expected [26] - Among age groups, Baby Boomers (71%) are the most likely to believe they have sufficient access to credit [23] - Younger Canadians (Gen Z and Millennials) show a higher sensitivity to interest rate changes when considering new credit [15]