Credit counsellors are seeing early signs of post-holiday strain — here's what you can do to reduce New Year debt-pressure

Canada’s inflation picture may look relatively calm on paper, but many households are feeling anything but.

While the national Consumer Price Index rose 2.2% year over year in November, grocery prices jumped 4.7%, marking the fastest increase since December 2023 and putting fresh pressure on everyday budgets just as holiday bills come due.

That strain is already showing up in Canadians’ financial behaviour. The Credit Counselling Society (CSS) says the number of people seeking credit counselling rose 11% in November compared with the same month last year, a notable early increase ahead of the typical January surge (1).

“Even though inflation appears stable at 2.2 percent, many Canadians are still feeling the pinch in their daily lives,” said Peta Wales, President and CEO of CCS, in a statement. “Rising grocery costs and holiday spending are leaving households with less flexibility to manage debt, and we’re seeing people reach out earlier than ever for guidance.”

Why grocery inflation is hitting harder than the headline number

Food costs tend to weigh more heavily on household finances than many other inflation categories, because they are both necessary and recurring.

CCS notes that while overall inflation has cooled, grocery prices remain elevated, squeezing discretionary room for families already navigating higher housing, transportation and utility costs.

Among Canadians seeking help, the financial picture has deteriorated. CCS says the average unsecured debt load reached $35,000, up from $31,000 a year earlier, suggesting that higher costs are increasingly being bridged with credit rather than savings.

The timing is also significant. November and December are typically months when households stretch budgets for gifts, travel and seasonal expenses, often deferring the consequences until the new year. This year, CCS says that deferral window appears to be shrinking.

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An early warning ahead of January bills

Historically, January is the busiest month for credit counsellors, as holiday spending collides with regular monthly obligations. Last year, CCS saw a 51% jump in demand for counselling from December to January.

With more Canadians already seeking help this fall, CCS warns the coming January could be more severe than usual. “Historically, counselling demand spikes in January after the holiday bills arrive,” said Isaiah Chan, Vice President of Programs and Services at CCS, in a statement.

“With more Canadians already seeking help this year, it’s clear that financial strain will reach unprecedented levels heading into the new year.”

For consumers, the message is that stress is emerging earlier in the cycle — a sign that household buffers are thinner than they were a year ago.

• Prioritizing essential bills first, such as rent, utilities and minimum debt payments
• Reining in last-minute holiday spending, including reconsidering traditions or making lower-cost substitutions
• Managing grocery costs deliberately, such as rotating a set of lower-cost meals to bring food spending under control
• Avoiding new high-interest debt, including relying on credit cards or buy now, pay later options for everyday expenses
• Seeking guidance early, before missed payments or late fees become an issue

“We’re already seeing Canadians struggling with everyday expenses on top of holiday bills,” said Mark Kalinowski, financial educator and CCS spokesperson, in a statement.

“By reviewing your budget, prioritizing essentials, being cautious with buy now, pay later options, and seeking guidance early, you can stay on top of payments and reduce stress when January bills arrive.”

What’s key for households heading into 2026

The rise in counselling demand suggests that even as inflation stabilizes, affordability pressures remain acute at the household level, particularly for essentials like food. For many Canadians, the challenge is no longer just rising prices, but a shrinking margin for error.

As 2026 approaches, CCS’s data points to a clear risk: households carrying higher unsecured debt and facing elevated grocery costs may find themselves exposed if income or employment conditions soften.

Acting early, CCS says, can be the difference between a manageable reset in January and a more prolonged financial setback.

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