{"id":991940,"date":"2022-08-16T21:29:15","date_gmt":"2022-08-17T01:29:15","guid":{"rendered":""},"modified":"2025-01-23T00:22:38","modified_gmt":"2025-01-23T05:22:38","slug":"canada-consumer-debt","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/personal-loans\/canada-consumer-debt","title":{"rendered":"Impact of Inflation: Canada consumer debt spikes as millions struggle with cost of living increase"},"content":{"rendered":"<h2>Impact of inflation in 2023<\/h2><p>Most Canadians began to take notice of the increased cost of living expenses in 2023. Almost overnight, costs associated with food, housing and transportation began consuming a much larger portion of our household budgets.<\/p><p>According to the International Monetary Fund (IMF), a United Nations financial institution, the average global interest rate jumped from 1.9% in 2020, to 3.4% in 2021, to 8% in 2022.<sup>(1)<\/sup>In Canada, inflation rates rose from historical lows of 0.72% in 2020 to 6.8% in 2022.<\/p><hr><iframe id=\"datawrapper-chart-L74YO\/2\/\" title=\"Average Interest Rate in Canada (1987 to 2022)\" width=\"100%\" height=\"400\" scrolling=\"no\" aria-label=\"interactive line chart\" src=\"https:\/\/datawrapper.dwcdn.net\/L74YO\/2\/\" loading=\"lazy\"><\/iframe><hr><p>While it\u2019s relatively easy to place blame for these higher costs on domestic economic policy \u2014 primarily on the <a href=\"https:\/\/www.finder.com\/ca\/banking\/bank-of-canada-interest-rate-forecast\">Bank of Canada\u2019s decision to raise the overnight policy rate<\/a> \u2014 this inflationary surge is actually a result of various factors, including global supply chain issues, exuberant monetary stimuli as well as good old-fashioned price gouging.<\/p><p>Still, the impact was the same: Canadians had to adjust to higher living costs due to surging inflation in 2023.<\/p><h3>Impact of inflation in 2022 and 2023<\/h3><p>Towards the end of 2022, many analysts predicted that the price increases had reached their peak midway through 2022. Many of these predictions were based on Statistics Canada inflation reports, which showed that Canada\u2019s annual inflation rate had hit 8.1% in June 2022, up from 7.7% in May 2022. At that point in time, this was the fastest price increase within the Canadian economy, since January 1983. (By July 2022, the Consumer Price Index numbers showed a slight drop in the pressure on prices with an inflation rate of 7.6%.)<\/p><p>For most Canadian consumers and businesses rising inflation meant a constant struggle to absorb the rapid price increases of 2022 and 2023 \u2013 as a result, many turned to debt, such as <a href=\"https:\/\/www.finder.com\/ca\/personal-loans\">personal loans<\/a>, to bridge the gap.<\/p><h3>How Canadians respond to rising costs in 2023<\/h3><p>To assess the impact of rising inflation, Finder asked more than 1,000 Canadians how they planned to adapt to the impact of inflation. According to the survey results of the <em>Finder: Impact of Inflation<\/em> report, <strong>1 in 4 (24%)<\/strong> respondents confessed to taking on debt to pay for higher living costs in 2022. That works out to approximately 7.3 million Canadians over the age of 18, who used loans or other forms of debt to cover the gap between their earnings and the rising cost of living.<\/p><hr><iframe id=\"datawrapper-chart-55tZf\/1\/\" title=\"How is the rising cost of living impacting you in 2022? \" width=\"100%\" height=\"400\" scrolling=\"yes\" aria-label=\"bar chart\" src=\"https:\/\/datawrapper.dwcdn.net\/55tZf\/1\/\" loading=\"lazy\"><\/iframe><hr><p>In 2023, survey results from the Finder: Consumer Sentiment Survey Q2 2023 and from the Finder: Consumer Sentiment Survey Q3 2023, showed that Canadians continued to look for ways to cut costs with food costs, entertainment and clothing topping the list for areas to cut costs.<\/p><hr><iframe id=\"datawrapper-chart-BIId9\/1\/\" title=\"Where Canadians Cut Expenses in 2023\" width=\"100%\" scrolling=\"yes\" aria-label=\"stacked line chart\" src=\"https:\/\/datawrapper.dwcdn.net\/BIId9\/1\/\" style=\"100%\" loading=\"lazy\"><\/iframe><hr><p>\u00a0<\/p><h2>Top 3 reasons Canadians are taking on debt<\/h2><p>Results from the <strong><em>Finder: Impact of Inflation<\/em><\/strong> survey showed that the top three reasons for taking out a loan in 2022 included:<\/p><ol><li>To cover bills, such as rent, mortgage, food, transportation, etc. \u2014 <strong>36%<\/strong><\/li><li>To consolidate existing debt \u2014 <strong>24%<\/strong><\/li><li>To cover bills and living expenses due to job loss \u2014 <strong>19%<\/strong><\/li><\/ol><h3>Men are taking on more debt but doing less about it<\/h3><p>According to <strong><em>Finder: Impact of Inflation<\/em><\/strong> survey data, <strong>1 in 4<\/strong> Canadians use debt to help pay for fixed living expenses, such as housing, transportation and food. While there is little difference between men and women when it comes to using debt \u2013 with <strong>25% of men and 23% of women<\/strong> admitting to using debt to pay for higher living costs\u2013there was a difference in how each gender tackled their rising debt levels.<\/p><p>For instance, <strong>63%<\/strong> of women said they are cutting back on personal extras, like clothing or entertainment, to combat the rise in their monthly expenditures. However, only <strong>53%<\/strong> of men chose to take the same actions to combat the rise in living costs.<\/p><p>This more fiscally conservative approach to balancing the budget works for women \u2014 with <strong>10%<\/strong> <strong>of women<\/strong> surveyed reporting that current inflation pressures had no impact on their personal budgets, compared to <strong>16% of men<\/strong>. However, the rationale behind these actions is worrying. According to the Canadian Women\u2019s Foundation, 10% of women in Canada live below the poverty line, with another <strong>28%<\/strong> in need of affordable, suitable housing.<sup>(2)<\/sup> In the <strong><em>Finder: Impact of Inflation<\/em><\/strong> survey, women reported they were almost twice as likely (<strong>5%<\/strong>) to fall behind on payments for housing-related expenses, compared to <strong>3%<\/strong> of men.<\/p><h3>Young and middle-aged Canadians sinking deeper into debt<\/h3><p>Rising living costs impact demographic groups in different ways. As expected, the youngest adults in Canada \u2013 Generation Z, or those aged 18 to 26 \u2013 reported being significantly impacted by higher living costs, with more than a quarter (<strong>26%<\/strong>) taking on debt to pay for increased living costs.<\/p><p>Surprisingly, <strong>27%<\/strong> of Canadians aged 27 to 41 (millennials) and <strong>27%<\/strong> of Gen X (those aged 42 to 56) also took on debt to combat recent inflationary pressures.<\/p><p>Even baby boomers (those between the ages of 57 and 76) were not immune to the budget strain, with <strong>18%<\/strong> confessing to relying on loans and short-term debt to cover regular monthly expenses.<\/p><p>The biggest difference is how each generation reacts to higher living costs. Relatively few baby boomers, just <strong>3%<\/strong>, plan to move to reduce housing costs; even fewer, <strong>2%<\/strong>, report falling behind on mortgage payments or rent. However, two-thirds of baby boomers (<strong>66%<\/strong>) were actively cutting back on all spending \u2013 the highest of any generation surveyed \u2013 in order to minimize the impact of inflation in 2022.<\/p><iframe id=\"datawrapper-chart-DJsSd\/2\/\" title=\"Solutions to inflation by generation\" width=\"100%\" height=\"400\" scrolling=\"yes\" aria-label=\"bar chart\" src=\"https:\/\/datawrapper.dwcdn.net\/DJsSd\/2\/\" loading=\"lazy\"><\/iframe><h3>Middle-income households are the most indebted<\/h3><p>Perhaps one of the more frightening revelations from the <strong><em>Finder: Impact of Inflation<\/em><\/strong> survey was the level of reliance each income bracket had on debt to cover standard living expenses.<\/p><p>Those who earned more than $155,000 \u2013 the bottom of Canada\u2019s highest income-tax bracket \u2013 were the least likely (<strong>13%<\/strong>) to take on debt to cover living expenses, followed by Canadians in the lowest income-tax bracket. Middle-income earners \u2013 those who earned a bit more than $50,000 and just over $100,000 \u2013 were the most likely to rely on debt to cover living costs.<\/p><p>\u201cMiddle-income earners are really struggling,\u201d says Romana King, personal finance expert and group editor at Finder, a personal finance comparison site with a mission to help Canadians save, invest, spend wisely and grow their wealth. \u201cData shows that wages are not keeping pace with higher living costs and this puts middle-income earners\u2013the bulk of Canadians\u2013in a tough position. It forces many to start prioritizing their expenses and finding ways to make ends meet.\u201d<\/p><hr><iframe id=\"datawrapper-chart-634h1\/2\/\" title=\"Percentage who have taken on debt to cover living costs by income group\" width=\"100%\" height=\"400\" scrolling=\"yes\" aria-label=\"bar chart\" src=\"https:\/\/datawrapper.dwcdn.net\/634h1\/2\/\" loading=\"lazy\"><\/iframe><hr><h3>Where you live impacts debt levels<\/h3><p>Turns out that where you put down roots also impacts whether you can absorb higher living costs.<\/p><p>According to the <strong><em>Finder: Impact of Inflation<\/em><\/strong> survey data<\/p><p><img decoding=\"async\" class=\" wp-image-989335 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\"><strong>Almost half of Alberta residents (47%)<\/strong> plan to rely on debt in 2022 to cover essential living costs, such as rent or mortgage, groceries and transportation.<\/p><p><img decoding=\"async\" class=\" wp-image-989336 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\"><strong>1 in 10 Manitobans (10%)<\/strong> plan to move in 2022 to lower their housing costs. Not surprisingly, they also led the country in the percentage of adults behind in making their mortgage or rent payments (<strong>8%<\/strong>).<\/p><p><img decoding=\"async\" class=\"wp-image-989337 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-2.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-2.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\">Both Alberta and Ontario residents were the most likely to take out a loan due to a household job loss (<strong>22% and 22%, respectively<\/strong>).<\/p><p><img decoding=\"async\" class=\"wp-image-989337 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-2.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-2.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\">The province with the highest percentage of Canadians feeling the least impacted by inflation was Quebec, where <strong>15%<\/strong> said they were unlikely to borrow funds to pay for expenses (the national average was <strong>10%<\/strong>).<\/p><h2>Impact of ongoing inflation and rising debt<\/h2><p>The mix of rising interest rates, an increase in the cost of living and higher levels of personal debt will certainly impact Canadians, but to varying degrees. Still, there is a risk that Canadians already struggling to find ways to cut expenses could face serious consequences in the coming years if they don\u2019t have a plan to tackle their debt and reduce their expenses.<\/p><p>One concern is the impact rising rates will have on housing costs.<\/p><h3>How many Canadians are in danger of losing their homes?<\/h3><p>When asked how inflation impacted overall household budgets, many Canadians cited housing costs as a primary concern within their stretched budgets.<\/p><hr><p><img decoding=\"async\" class=\" wp-image-989335 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\"><strong>4% of Canadians<\/strong> \u2013 approximately 1.3 million adults above age 18 \u2013 reported falling behind on housing payments in 2022<\/p><p><img decoding=\"async\" class=\" wp-image-989336 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\">Renters are in a more precarious housing position, with <strong>9%<\/strong> falling behind on housing payments as compared to <strong>6%<\/strong> of homeowners with a mortgage<\/p><p><img decoding=\"async\" class=\" wp-image-989335 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\">Almost twice as many women (<strong>5%<\/strong>) report falling behind on their housing payments compared to men (<strong>3%<\/strong>)<\/p><p><img decoding=\"async\" class=\" wp-image-989336 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\">The demographic most at risk for falling behind on rent or mortgage payments is Gen X, with <strong>7%<\/strong> reporting they are behind on housing payments compared to the national average of <strong>4%<\/strong><\/p><p><img decoding=\"async\" class=\" wp-image-989335 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\">Divorced or separated Canadians are also more likely to fall behind on rent or mortgage payments, with <strong>9%<\/strong> reporting that they were behind on housing payments in 2022.<\/p><p><img decoding=\"async\" class=\" wp-image-989336 alignleft\" title=\"Image: Supplied\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg\" alt=\"Picture not described\" width=\"32\" height=\"32\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2022\/06\/Finder-Icons-1.jpg?fit=96 96w\" sizes=\"(max-width: 96px) 100vw, 96px\" loading=\"lazy\">Three times as many Gen Z (<strong>12%<\/strong>) vs boomers (<strong>3%<\/strong>) say they plan to move this year to lower housing costs<\/p><p>\u00a0<\/p><hr><p>While missing rental or mortgage payments is concerning, the good news is that the vast majority of Canadians are not on the verge of losing their home. According to data collected by the Canadian Bankers Association, a trade association that represents more than 60 domestic and foreign banks in Canada, mortgage defaults rarely rise above 1% in Canada, even during the harshest economic times.<sup>(3)<\/sup> For instance, between 2008 and 2011, when the global economy had to contend with the credit crunch due to America\u2019s housing market crash, the default rate on Canadian mortgages never rose above <strong>0.5%<\/strong>. As of May 2022, the average rate for mortgages in arrears, across Canada, was <strong>0.15%<\/strong>.<\/p><p>However, renters are in a more precarious position and, traditionally, hit harder during tough economic conditions or when costs start to rise. According to data collected by the Canadian Mortgage and Housing Corporation (CMHC), between 150,000 to 250,000 renters \u2014 <strong>approximately 6% of the rental market<\/strong> \u2014 are currently in arrears.<sup>(4)<\/sup><\/p><h2>5 smart ways to beat inflation<\/h2><p>\u201cIt\u2019s easy to feel overwhelmed when inflation increases the cost of living,\u201d explains King.<\/p><p>\u201cThe good news is most of us have the option to control how much inflation will impact our budget. Start by creating or reviewing your budget. Then cut any unnecessary expenses. Studies show this simple act helps most of us cut about <strong>15%<\/strong> off our current monthly expenses.\u201d<\/p><p>For more help, consider these five tips to help you fight inflation.<\/p><article class=\"luna-card luna-card--shadow\"><div class=\"luna-card__block\"><h3>#1: Get into the habit of saving<\/h3><p>To get the most out of your earnings\u2013and combat higher living costs\u2013you need to focus on making your money work for you, and this starts with developing the habit of saving.<\/p><p>In inflationary times, the best place to start developing this habit is with an emergency fund. While most experts suggest setting aside enough money to cover three to six months\u2019 worth of bills, the actual amount you save in your emergency fund isn\u2019t as important as the discipline of learning to save consistently.<\/p><p>\u201cConsider your emergency fund the money you set aside to pay for unexpected expenses. It\u2019s your financial safety net,\u201d explains King. For that reason, worry less about how much you set aside and concentrate, instead, on consistently putting those funds aside. A great option is to hold these funds in a high-interest savings account, since these bank accounts are easily accessible, but can\u2019t be used for everyday spending. Plus, you end up earning more interest on the money you save when compared to regular savings accounts or chequing accounts.<\/p><p>To find the best account, check out our comparison of the <a href=\"https:\/\/www.finder.com\/ca\/savings-accounts\/best-high-interest-savings-accounts\" target=\"_blank\" rel=\"noopener\">best high-interest savings accounts<\/a> in Canada.<\/p><\/div><\/article><article class=\"luna-card luna-card--shadow\"><div class=\"luna-card__block\"><h3>#2: Continue (or start) investing<\/h3><p>When prices are going up, and budgets are tight, it\u2019s easy to cut back on expenses that don\u2019t appear to have an immediate benefit\u2013including money used to boost retirement savings. Resist this temptation.<\/p><p>Historically, well-diversified investment portfolios easily outpace inflation \u2013 even when markets spike and bubbles burst. \u201cWhen you invest, your money makes money and, over time, that\u2019s how you accumulate wealth,\u201d says King.<\/p><p>For new investors, consider starting with a basket of funds, such as a balanced exchange-traded fund (ETF) or use a robo-advisor. As you learn to read your portfolio earnings and become more comfortable with the process of investing, you can move to an online brokerage that allows you to trade and invest based on your personal investment strategy.<\/p><p>For the best online investing platforms for beginners, check out our comparison of the <a href=\"https:\/\/www.finder.com\/ca\/investments\/robo-advisors\" target=\"_blank\" rel=\"noopener\">best robo-advisors in Canada<\/a>.<\/p><p>For more experienced investors, consider a little comparison shopping. Reducing fees is a great way to boost returns\u2013and another way to combat the erosion of purchasing power due to inflation.<\/p><p>To help compare discount brokerage costs, and check out the latest marketplace offers, check out our <a href=\"https:\/\/www.finder.com\/ca\/stock-trading\/best-stock-trading-apps-in-canada\" target=\"_blank\" rel=\"noopener\">guide to trading platforms and apps in Canada<\/a>.<\/p><\/div><\/article><article class=\"luna-card luna-card--shadow\"><div class=\"luna-card__block\"><h3>#3: Reduce expenses<\/h3><p>A great way to combat rising costs is to cut back in your own budget.<\/p><p>Start by cutting out what you don\u2019t need, then strategically reduce any remaining expenses.<\/p><p>\u201cWe often shop around for the best price when initially making a purchase,\u201d says King, \u201cbut over time, as the price for that good or service increases, we neglect to comparison shop.\u201d<\/p><p>To start, consider how and where to cut streaming services, such as Amazon Prime, Apple TV or Netflix. These recurring subscription service costs can really add up and, over time, cost you thousands of dollars. Consider what services you really use and then cancel or downgrade the rest.<\/p><p>Then move on to annual recurring costs, such as cellphone service, internet and home and <a href=\"https:\/\/www.finder.com\/ca\/car-insurance\" target=\"_blank\" rel=\"noopener\">car insurance<\/a>.<\/p><\/div><\/article><article class=\"luna-card luna-card--shadow\"><div class=\"luna-card__block\"><h3>#4: Consolidate debt<\/h3><p>For Canadians currently in debt, it\u2019s time to consider how to pay off this debt faster or to minimize the cost of this borrowed money.<\/p><p>For instance, consider consolidating high-interest debt into a lower-interest loan.<\/p><p>For example, if you carried a $10,000 balance on a credit card that charges 21.99% interest and only paid $250 per month, it would take you more than 25 years to repay that debt and cost you almost $24,000 more in interest charges. (You can see your own calculations using <a href=\"https:\/\/www.creditcanada.com\/debt-calculator?utm_medium=ppc&amp;utm_campaign=CA+%7C+grant+%7C+debt-calculator&amp;utm_term=credit%20card%20calculator&amp;utm_source=adwords&amp;hsa_tgt=kwd-12836991&amp;hsa_ad=288237596866&amp;hsa_mt=b&amp;hsa_cam=1363855659&amp;hsa_src=g&amp;hsa_ver=3&amp;hsa_kw=credit%20card%20calculator&amp;hsa_acc=8770489077&amp;hsa_net=adwords&amp;hsa_grp=63834864211&amp;gclid=Cj0KCQjw3eeXBhD7ARIsAHjssr_ZiTL_l4PuY2VL3QpQbhPXfeAut22cW5d4F8EFAvPmOeRbcNsLwqAaAifyEALw_wcB\" target=\"_blank\" rel=\"noopener\">Credit Canada\u2019s debt calculator<\/a>.)<\/p><p>Keeping the same monthly payments, you could save more than $16,500 in interest charges and pay off the debt a year early just by switching to a credit card that charges 12.99% interest per year. To find a lower interest rate credit card, check out <a href=\"https:\/\/www.finder.com\/ca\/credit-cards\" target=\"_blank\" rel=\"noopener\">Finder\u2019s credit card comparison guide<\/a>.<\/p><p>Another option is to consider consolidating higher-interest debt into a lower-interest loan.<\/p><p>For example, consider a lower-interest loan that charges 4.7%, and you could pay off that debt in just over 16 years and pay less than $2,000 in interest charges. To help find a lower-interest personal loan, use <a href=\"https:\/\/www.finder.com\/ca\/personal-loans\/low-interest-personal-loan\" target=\"_blank\" rel=\"noopener\">Finder\u2019s personal loan comparison guide<\/a>.<\/p><p>By lowering the cost you pay to borrow money, you free up more money to pay down debt, and this reduces your overall debt burden and helps you get out of debt faster.<\/p><\/div><\/article><article class=\"luna-card luna-card--shadow\"><div class=\"luna-card__block\"><h3>#5: Negotiate<\/h3><p>The final step to beating inflation is negotiating better rates and terms on all recurring expenses you can\u2019t or won\u2019t give up.<\/p><p>\u201cGo through your budget and make a list, then schedule a call with your provider to ask about deals, promos or ways to reduce your costs,\u201d says King.<\/p><p>A good starting list includes streaming services, insurance premiums, TV cable bills, cell phone plans and gym memberships, as well as credit card interest rates.<\/p><p>\u201cAll of these services are great examples of recurring costs open to negotiation,\u201d says King. \u201cThe best part is that studies prove this method of cost-cutting works. People who call and ask for lower rates are almost always successful \u2013 making this process of negotiating costs a great tool for reducing monthly expenses.\u201d<\/p><p>If the service provider isn\u2019t willing to come down in price, consider other options. This is where a few minutes of comparison shopping can help save you hundreds of dollars. Or consider asking for more \u2013 more perks or more service but at the same price. \u201cRemember, when it comes to combatting the increased cost of living, getting more for your money is a good way to add value at the same price.\u201d<\/p><\/div><\/article><h3>The bottom line<\/h3><p>Record-high inflation is likely here to stay, at least in the near term. The key is to take out smarter loans, consolidate debt, reduce expenses and save and invest where possible. By sticking to a plan, Canadians will be better able to weather the inflation storm and be better positioned for when it inevitably passes.<\/p><script type=\"text\/javascript\">\n    function addLink() {\n    var body_element = document.getElementsByTagName('body')[0];\n    var selection;\n    selection = window.getSelection();\n    var k = document.location.href\n    var pagelink = \"<br><br> Source: \";\n    var finder = \"finder.com\"\n    var ke = (finder.link(\"https:\/\/www.finder.com\/ca\/\"));\n    var pagelink2 = \"<br> Analysis conducted by \" + ke;\n    var copytext = selection + pagelink + (k.link(document.location.href)) + pagelink2;\n    var newdiv = document.createElement('div');\n    newdiv.style.position='absolute';\n    newdiv.style.left='-99999px';\n    body_element.appendChild(newdiv);\n    newdiv.innerHTML = copytext;\n    selection.selectAllChildren(newdiv);\n    window.setTimeout(function() {\n    body_element.removeChild(newdiv);\n    },0);\n    }\n    document.oncopy = addLink;\n    <\/script><ul class=\"luna-accordionGroup accordionGroup\"><li class=\"luna-accordion\" data-accordion=\"accordion\">\n  <div class=\"luna-accordion__summary\">\n    <h4 class=\"luna-accordion__heading\">\n      <button class=\"luna-accordion__action collapsed\" aria-expanded=\"false\" aria-controls=\"accordion0000000000\" data-toggle=\"collapse\" data-target=\"#accordion0000000000\">\n        <span class=\"luna-accordion__title\">Survey Methodology \u2014 <em>Finder: Impact of Inflation<\/em><\/span>\n        <svg class=\"luna-icon\" aria-hidden=\"true\">\n          <use xlink:href=\"#chevron-down\" data-accordion-icon=\"show\"><\/use>\n          <use xlink:href=\"#chevron-up\" data-accordion-icon=\"hide\" class=\"is-hidden\"><\/use>\n        <\/svg>\n      <\/button>\n    <\/h4>\n  <\/div>\n  <div class=\"luna-accordion__details collapse\" aria-hidden=\"true\" id=\"accordion0000000000\" data-accordion=\"details\">\n    <div class=\"accordionContent\">Finder surveyed 1,013 Canadian consumers from July 14 to 18, 2022, using Censuswide, a professional market research firm with standards based on the ESOMAR principles. Certain regions or demographic groups were omitted from more specific analyses due to a lack of statistically significant responses from that particular group. The estimated margin of error for the survey is +\/- 3.08%, 95% of the time.<\/div>\n  <\/div>\n<\/li><li class=\"luna-accordion\" data-accordion=\"accordion\">\n  <div class=\"luna-accordion__summary\">\n    <h4 class=\"luna-accordion__heading\">\n      <button class=\"luna-accordion__action collapsed\" aria-expanded=\"false\" aria-controls=\"accordion0000000001\" data-toggle=\"collapse\" data-target=\"#accordion0000000001\">\n        <span class=\"luna-accordion__title\">Survey Methodology \u2014 <em>Finder: Customer Sentiment Survey Q2 2023<\/em><\/span>\n        <svg class=\"luna-icon\" aria-hidden=\"true\">\n          <use xlink:href=\"#chevron-down\" data-accordion-icon=\"show\"><\/use>\n          <use xlink:href=\"#chevron-up\" data-accordion-icon=\"hide\" class=\"is-hidden\"><\/use>\n        <\/svg>\n      <\/button>\n    <\/h4>\n  <\/div>\n  <div class=\"luna-accordion__details collapse\" aria-hidden=\"true\" id=\"accordion0000000001\" data-accordion=\"details\">\n    <div class=\"accordionContent\">The results of the &lt;em&gt;Finder: Consumer Sentiment Survey Q2&lt;\/em&gt; (&lt;em&gt;Finder: CSTQ2&lt;\/em&gt;) were collected through an online Pollfish survey conducted between April 27 to 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their current financial confidence, where they planned to make changes and what products or services they planned on buying or using. The estimated margin of error for the survey is +\/- 3.08%, 19 out of 20 times.<\/div>\n  <\/div>\n<\/li><li class=\"luna-accordion\" data-accordion=\"accordion\">\n  <div class=\"luna-accordion__summary\">\n    <h4 class=\"luna-accordion__heading\">\n      <button class=\"luna-accordion__action collapsed\" aria-expanded=\"false\" aria-controls=\"accordion0000000002\" data-toggle=\"collapse\" data-target=\"#accordion0000000002\">\n        <span class=\"luna-accordion__title\">Survey Methodology \u2014 <em>Finder: Customer Sentiment Survey Q3 2023<\/em><\/span>\n        <svg class=\"luna-icon\" aria-hidden=\"true\">\n          <use xlink:href=\"#chevron-down\" data-accordion-icon=\"show\"><\/use>\n          <use xlink:href=\"#chevron-up\" data-accordion-icon=\"hide\" class=\"is-hidden\"><\/use>\n        <\/svg>\n      <\/button>\n    <\/h4>\n  <\/div>\n  <div class=\"luna-accordion__details collapse\" aria-hidden=\"true\" id=\"accordion0000000002\" data-accordion=\"details\">\n    <div class=\"accordionContent\">The results of the &lt;em&gt;Finder: Consumer Sentiment Survey Q3 (CSTQ3)&lt;\/em&gt; were collected through an online Pollfish survey conducted between August 10 to 21, 2023. In the survey, 1,013 Canadians from across the country were asked about their current debt obligations, among other questions regarding money goals and financial confidence. The estimated margin of error for the survey is +\/- 3%, 90% of the time.<\/div>\n  <\/div>\n<\/li><\/ul><div class=\"box has-shadow\">\n<h3>About Finder<\/h3>\n<p><a href=\"https:\/\/www.finder.com\/ca\">Finder<\/a> is a personal finance comparison site with a mission to help Canadians save, invest, spend wisely and grow their wealth. Each month, Finder provides half a million Canadians \u2013 and more than five million globally \u2013 with independent and trustworthy financial information. Our goal is to help people make better financial decisions by providing objective, comparative insight on thousands of products and services.<\/p>\n\n<p>As a global fintech website and app, Finder provides consumers free access to smart money content. Whether it's expert insight, product or service comparisons or independent reviews, Finder helps consumers stay on top of their finances while saving time and money.<\/p>\n\n<p>Finder is available to consumers in Canada, Australia, America and the United Kingdom. Initially launched in 2006 by three Australians \u2013 Fred Schebesta, Frank Restuccia and Jeremy Cabral \u2013 Finder's global reach now includes thousands of products and services in hundreds of financial categories and provides expert content and independent reviews to more than five million users each month.<\/p>\n\n<\/div><div id=\"sources\" style=\"position: relative;\"><h3 style=\"position: absolute; width: 1px; height: 1px; padding: 0; margin: -1px; overflow: hidden; clip: rect(0,0,0,0); white-space: nowrap; border: 0;\">Sources<\/h3>\n<div id=\"lazy0000000000\"><\/div>\n<script type=\"application\/json\" id=\"lazyloaded-assets-json-lazy0000000000\" 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