Navigating January’s Triple Threat

By: Pattie Lovett-Reid

It hasn’t been easy for many Canadian households as debt levels rise. Blue Monday, which falls on the third Monday of January, is often called the saddest day of the year. It occurs when credit card bills from the December shopping bonanza arrive. This year, added to these stressors, President-elect Donald Trump’s inauguration is on January 20th, adding to the financial challenge due to the looming threat of Trump’s proposed 25% tariffs on Canadian goods. It is a triple threat to the household balance sheet.

Depending on the amount, the proposed tariffs on Canadian goods can inflict serious economic repercussions, particularly for industries like steel, aluminum, and manufacturing. Tariffs would cause prices to increase and put pressure on Canadian exporters. The threat of job loss, an economic recession and financial pressure is a lot to comprehend.

What can you do to take control of your financial situation and help mitigate this triple financial threat?

Step one: Begin with a clear understanding of your financial situation. Don’t bury your head in the sand. Confront your financial facts. Review your holiday bills and, if necessary, prioritize paying off the higher-interest debt first. If your debt levels have been rising, and you have been carrying significant credit card balances, stop and take a breath. You don’t have to get through this alone. The savvy person knows when they are over their head and will seek help. 

Step two: You likely didn’t get into financial trouble overnight; getting out of it could take time. Blue Monday can feel overwhelming due to the accumulated stress and financial overextension. Simplify this by creating a realistic budget focused on three things: 1) essentials, 2) debt repayment and 3) savings. Challenge yourself to no-spending days that turn into no-spending weeks. Regain a sense of control by stopping unnecessary spending and freeing up money to help combat the higher costs associated with the tariffs.

Step three: Tariffs are a real financial threat to your household, yet you can make a big difference in a small way. As a consumer, you decide where you are going to shop. By supporting local businesses and seeking out Canadian-made alternatives, you are helping to keep money here in Canada and supporting domestic companies and industries facing economic uncertainty. 

If your financial situation is dire, please seek help today. It can be a very empowering experience. No one likes to think Bankruptcy is the only option they have to experience financial freedom. And it isn’t for everyone anyway. The real goal is to get a fresh economic start at the beginning of a new year. That may mean exploring a consumer proposal, debt management program, or even budgeting assistance and advice. The point is that you need a plan tailored to you. This course of action applies to individuals and business owners. 

Contrary to popular belief, financial stress doesn’t only occur when overspending occurs. It can happen when there is a job loss, a health challenge, or a change in the economic landscape. 

Blue Monday can be a launching pad for change. It is so much more than your financial situation – it is also about your mental health. Please take a moment to reflect on all aspects of your life. And remember, economic stress isn’t terminal. It is temporary. You might need assistance to navigate a financial detour. 

The threat of tariffs, rising debt, and post-holiday bills can feel daunting, but you have been through more and are far more resilient than you realize. Taking control of your finances, seeking help, and supporting locals can set a positive tone for 2025. 

Together, let’s rise above Janury’s triple threat.