--- title: "Price shock: How Canadians are coping with the rising cost of living" date: 2023-03-21T10:24:32-04:00 canonical_url: "https://grantthorntonlimited.ca/en/debt-help-resources/articles/price-shock-how-canadians-are-coping-with-the-rising-cost-of-living" section: Articles --- [ Back to the hub ](https://grantthorntonlimited.ca/en/debt-help-resources/articles) # Price shock: How Canadians are coping with the rising cost of living ![Two small paper bags filled with groceries representing the rising cost of living in Canada](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleHero/6349/See-insights-on-how-canadians-are-coping-with-a-rising-cost-of-living.webp) Canadians feel the heat as rising inflation, increasing interest rates, and higher debt loads scorch their finances. After slashing interest rates to near zero early in the pandemic, the Bank of Canada raised its benchmark interest rate eight times over the last year to tame inflation— the highest level in decades. On top of that,[ total consumer debt climbed to $2.46 trillion](https://www.consumer.equifax.ca/about-equifax/press-releases/-/blog/keeping-up-with-the-economy-canadians-continue-to-adapt-their-credit-and-financial-decisions), with average non-mortgage debt per consumer sitting at more than $21K. Rising costs are taking a toll on nearly all Canadians. However, the impact is felt more acutely by low-income households and those carrying debt. In fact, according to our recent survey, more than a quarter of Canadians (27%) say they can’t afford any additional increases in monthly living expenses and financial obligations; low-income households (<$50k) are more than twice as likely as high-income households ($100k+) to say this. Further insights from our survey are illustrated in the following infographic. ![Price Shock: How Canadian are coping with the rising cost of living](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Assets-download-or-link/PriceShock2023.png)If you’re one of the many Canadians struggling to make ends meet due to increased living expenses and debt, we can help. [Book a free, no-obligation consultation](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) to learn more. ## Latest articles [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/65155/recreational-vehicle-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [### What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63555/influencer-survey.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [### Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63201/cp-annulment-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) [### What happens if you miss a consumer proposal payment? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) ## Subscribe to our newsletter Get tips and tools to help manage your finances and live debt free. \*I agree to receive communications from Doane Grant Thornton. I understand that I can unsubscribe at any time. ## **Take the first step** to debt freedom Speak to one of our debt solutions professionals during a free, no-obligation consultation. [ Book a free consultation ](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) ## Related articles ![Marina filled with sailboats and recreational boats along the Charlottetown waterfront on a sunny day.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/65155/recreational-vehicle-square.webp) ### [ What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) For many Canadians, recreational vehicles offer freedom, adventure, and unforgettable family memories. 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