# Canadians Experiencing 'Lifestyle Shrinkflation' as Income Pressures Mount
A new report from MNP reveals that Canadians are reducing their living standards in response to income constraints, a phenomenon being termed "lifestyle shrinkflation." The data comes from the MNP Consumer Debt Index, which tracks various forms of consumer credit obligations including credit cards, lines of credit, payday loans, and Buy Now Pay Later services.
The findings indicate that Canadians are adjusting their consumption patterns and lifestyle choices as their paycheques fail to keep pace with financial pressures. Rather than maintaining their previous standard of living, households are scaling back spending and making do with less across various categories of consumption.
The report highlights the growing reliance on different forms of credit among Canadian consumers, suggesting that many households are turning to borrowed money to bridge gaps between income and expenses. This trend reflects broader economic pressures facing Canadian households and their attempts to manage financial strain through lifestyle modifications.
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