Inflation is causing more than 1.3 million Canadians to fall behind on housing payments. There’s a prevalence among renters (9 per cent) versus mortgage holders (6 per cent), as revealed in the recent Impact of Inflation report from personal finance comparison site Finder.

Consumer price index figures for July show persistently high inflation of 7.6 per cent. The report found seven million people in Canada are generally sinking into debt because, on top of housing, they’re also trying to pay for essentials like food and gas. Many are taking out loans to do so, while others have lost jobs or are consolidating existing debt.

Middle-income earners are taking out debt to cover costs at 30 per cent, nearly three times as much as the highest income earners.

“Middle-income earners are really struggling,” says Romana King, senior finance editor at Finder. “Data shows that wages are not keeping pace with higher living costs and this puts middle-income earners—the bulk of Canadians—in a tough position. It forces many to start prioritizing their expenses and finding ways to make ends meet.”

Gen X is most at risk for falling behind on rent or mortgage payments at seven per cent compared to the national average of four per cent. More than a quarter of both Gen Z and millennials are also taking on debt to pay for increased living costs. Baby boomers report being less impacted by inflation this year, but 66 per cent were still actively cutting back on all spending—the highest of any generation surveyed.

While there is little difference between men and women when it comes to using debt, 63 per cent of women said they are cutting back on personal extras, like clothing or entertainment, in order to combat the rise in their monthly expenditures. Only 53 per cent of men chose to take the same actions.

“It’s easy to feel overwhelmed when the cost of living starts to increase,” explains King. “The good news is most of us have the option to control how much inflation will impact our budget. To take control, start by creating or reviewing your budget. Then cut any unnecessary expenses. Studies show this simple act helps most of us cut about 15 per cent off our current expenses.”

To see the full Impact of Inflation report, learn more about who could lose their homes, along with more demographic statistics and insights (gender, income, age and region) visit; https://www.finder.com/ca/consumer-debt-report.

Photo by Ketut Subiyanto.