Grocery Prices Surge and Demand for Credit Counselling Climbs -- CCS Warns of Post-Holiday Financial Strain

Rising grocery prices and holiday spending are leaving households stretched, and more Canadians are seeking advice to manage January bills.

NEW WESTMINSTER, BC, Dec. 16, 2025 /CNW/ - While Canada's Consumer Price Index (CPI) rose 2.2 per cent year over year in November, soaring grocery prices and holiday spending are leaving households stretched. Grocery costs were up 4.7 per cent, the largest increase since December 2023, creating real financial pressure ahead of the new year.

At the Credit Counselling Society (CCS), counsellors are already seeing more Canadians seeking help compared with last year. In November 2025, the number of people reaching out for credit counselling rose by 11% compared with November 2024. Those seeking help were carrying significant debt, averaging $35,000 in unsecured debt -- up from $31,000 last November.

Peta Wales, President & CEO of CCS, states:
"Even though inflation appears stable at 2.2 per cent, many Canadians are still feeling the pinch in their daily lives. 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."

The current uptick in counselling demand serves as an early warning for January, when demand historically spikes. Last year, the number of Canadians seeking help jumped 51 per cent from December to January, and with more people already turning to CCS this fall, financial strain could reach unprecedented levels heading into the new year.

Isaiah Chan, Vice President of Programs & Services at CCS, explains:
"Historically, counselling demand spikes in January after the holiday bills arrive. Last year, we saw a 51 per cent jump from December to January. With more Canadians already seeking help this year, it's clear that financial strain will reach unprecedented levels heading into the new year."

Practical Steps for Canadians

As grocery prices and holiday spending push budgets tighter, CCS recommends Canadians take early action to prevent stress and late fees in January.

• Review and prioritize essential bills first: Cover rent, utilities, and minimum debt payments before discretionary spending.
• Adjust last-minute holiday spending: Look for cost-saving swaps and start new traditions to reduce strain.
• Save on your grocery budget: Choose 10 affordable meals and build them into your meal and snack rotation once a month.
• Avoid adding high-interest debt: Taking on new credit to cover everyday costs can make the January crunch worse.
• Reach out to a credit counsellor early: Even small adjustments now can prevent bigger challenges next month.

Mark Kalinowski, Financial Educator & CCS spokesperson, adds:
"We're already seeing Canadians struggling with everyday expenses on top of holiday bills. 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."

CCS encourages Canadians to check their budgets, explore payment arrangements with creditors if needed, and seek free, confidential guidance before the new year to stay ahead of rising costs.

To speak with a certified credit counsellor, visit nomoredebts.org or call 1-888-527-8999.

About the Credit Counselling Society

The Credit Counselling Society is a non-profit organization dedicated to helping consumers better manage their money and debt. CCS provides free and confidential credit counselling, objective debt repayment options, budgeting assistance, and financial education. Visit nomoredebts.org.

SOURCE Credit Counselling Society

Media Inquiries: The Credit Counselling Society has spokespeople from across Canada available for interviews to discuss this topic in more detail as well as any other relevant financial topics. Please feel free to reach out to the number below: Garrett Johnson, Content & Communication Specialist, Direct: 604-636-0292, Email: [email protected]