Holiday debt stress is exacerbating poor financial management for millions of households, survey reveals
Blue Monday is approaching, marking the date that millions of Canadians will be facing the multiple challenges of credit card bills and more than a week until pay day.
New national research suggests many Canadian households are under significant financial and emotional strain, weighed down by post-holiday debt, rising stress levels and growing avoidance behaviours around money management. This backs up other surveys suggesting similar challenges.
The report from Spergel shows that more than half of Canadians (51%) carried new holiday debt into January, while 29% report starting the year with over $6,000 in fresh holiday-related balances. Three quarters say they feel more financially stressed than in previous years, and nearly one in three expect it will take at least six months, or an unknown amount of time, to recover financially.
Warning signs of financial avoidance are also growing. The survey found 30% of respondents are actively avoiding reviewing bank or credit card statements, and 18% expect to fall behind on credit card payments this month. Half of Canadians say their holiday debt has already harmed their mental health.
Spergel’s earlier national study on debt and psychological wellbeing found overwhelming links between indebtedness and anxiety, poor sleep, shame and depression. The new data suggests those pressures have intensified rather than eased in the new year.
“What we’re seeing in January isn’t a sudden shift, it’s an escalation,” says Gillian Goldblatt, Licensed Insolvency Trustee and Partner at Spergel. “Canadians were already under intense psychological strain from debt. The holidays didn’t create the problem; they poured fuel on it.”
The research points to gifts (42%) and food and grocery costs (37%) as the primary drivers of seasonal overspending, reflecting the growing challenge households face meeting expectations amid elevated living costs.
Spergel also warns that winter isolation, incoming post-holiday bills and continued financial avoidance can heighten emotional distress. Previous company research found nearly one in five Canadians struggling with debt have experienced suicidal thoughts.
Despite the heavy burden, the survey suggests consumers are seeking practical guidance rather than drastic intervention. Over half (52%) say they would use free budgeting or spending tools, while top needs include clearer monthly budgets, lower payments, simplified repayment plans and emergency savings strategies.
“Debt is solvable, but silence makes it heavier,” adds Goldblatt. “Early, judgment-free support can prevent financial stress from becoming long-term emotional harm.”
