There are early warning symptoms that more Canadian borrowers are starting to struggle with their finances.
It’s a combination of increased difficulty keeping up with mortgage and credit card payments. Plus, we are living in a period of uncertainty caused by President Donald Trump’s tariffs.
Tariffs had been threatened, then introduced against many countries including Canada, and then changed multiple times. People are still trying to figure out how business will be transacted in our modern-day world that has until now embraced international trade.
Business uncertainty is having negative consequences on Canadians. The number of missed financial payments on credit cards has increased even though people are using their credit cards less often.
This information comes from Equifax based on the first three months of 2025. According to its website, “Equifax Canada is a data, analytics, and technology company.”
From a financial planning perspective, I recommend adjusting how you spend money based on the current uncertain economic environment and your own financial position.
If you are concerned about your financial health, it is better to react early and change your ways than let your finances deteriorate to the point that it causes real harm to you and your family. Determine what is a must-have versus what you hope to have.
Food and housing are likely at the top of your spending priorities while an expensive holiday or home renovation can be deferred. Every family is different both in their spending priorities and financial strength.
For now, from a financial perspective, times are changing. This is a good time to reassess your family finances to protect yourself against these uncertain times.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
