Kids Are Out, Costs Are Up, and Canadians Face Summer Spending Pressures Ahead of Rate Announcement
Credit Counselling Society urges Canadians to prepare for summer spending pressures amid a new tone in Ottawa and upcoming rate announcement.
NEW WESTMINSTER, BC, June 2, 2025 /CNW/ - With new economic and political conversations taking shape in Ottawa, including Prime Minister Mark Carney, a former Governor of the Bank of Canada, stepping into the spotlight, many Canadians are watching the upcoming interest rate announcement on June 5 for signs of change. But despite shifting signals at the top, the reality for most households remains the same: life is expensive, and this summer won't be any different.
"Summer comes with its own set of financial pressures. School is out, the kids need care or activities, and many people feel the pull to travel or make the most of their holiday time," explains Peta Wales, President and CEO of the Credit Counselling Society (CCS). "A rate cut might help those with a variable mortgage or home equity line of credit, but it will not make June, July, and August much cheaper."
CCS sees firsthand how Canadians approach this seasonal strain. These findings come from their latest report on Canadian household finances, available here:
- "Copers" do their best to budget but feel increasingly stretched. Nearly three-quarters of Canadians say spending more on essentials like food, housing, and transportation is a top reason their financial situation has worsened.
- "Strugglers" rely on credit to make ends meet. In fact, 36 per cent of Canadians reported their debt increased in the past year, and 67 per cent of those with more debt are paying little more than the minimum required, if anything extra at all.
- "Avoiders" delay dealing with financial stress. One-in-four Canadians only took action on their debt after it reached a critical stage or did not take any action at all.
Recognizing that Canadians manage financial stress in different ways, CCS offers guidance tailored to each group to help ease summer spending challenges:
For copers who are trying hard to budget but still seem like they are coming up short, summer can make things worse as travel, home renovations, and special events add to the pressure. Regular budget reviews help stay on top of fluctuating costs like increased utility bills or seasonal spending, while also identifying opportunities for savings that can make summer more affordable.
For strugglers who rely on credit cards or loans to cover everyday expenses, tracking all spending carefully can help identify small adjustments that add up—especially with kids at home and summer activities in full swing. Prioritizing essentials like food and housing, and exploring local community programs or free events, can help to not sacrifice fun or adding to credit stress. Seeking free credit counselling assistance to tackle your debt is equally important to prevent debt from spiraling—especially before the fall and winter spending seasons arrives.
For avoiders who feel overwhelmed and delay dealing with debt, summer can bring added guilt or isolation, especially if they are unable to participate in seasonal activities with friends or family. Reaching out for support now can ease that emotional and financial load. CCS provides confidential, non-judgmental help to create manageable plans tailored to each situation. Early intervention can prevent debt from reaching a critical point and improve peace of mind, before summer stress turns into fall regret.
"This might be the first rate announcement under a new political lens, but the financial pressure people feel day-to-day has not relented" states Isaiah Chan, Vice President of Programs and Services at CCS. "Regardless if rates go down or stay the same, the average person is still facing the same pressures at the grocery store, gas pump, and on their summer calendar."
"The good news is that no one has to manage this on their own," adds Mason Cox, Director of Counselling at CCS. "Whether it's summer spending or year-round financial stress, we're here to help you build a plan that works, without judgment and without pressure."
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 manage their money and debt better. CCS provides free and confidential credit counselling, objective debt repayment options, budgeting assistance, and financial education. Visit nomoredebts.org
SOURCE Credit Counselling Society of BC
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]
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