As the holiday season approaches, a startling 94% of Canadians say they expect it to cause financial stress.

That is what a new survey from CPA Canada and BDO Debt Solutions suggests.

Nearly 40% of respondents reported they expect to feel more financially stressed this year, while 55% said they anticipate the same amount as last year. Additionally, 56% of respondents suggest they’ll rely on credit cards to cover their holiday expenses.

Chris Sinclair is a Director, Licensed Insolvency Trustee with BDO. He says stress levels might be the highest they’ve ever been. “You can see why. We all go to the store, we see what stuff costs, and even though inflation is coming down, there’s still inflation. So even though the rate at which things are getting more expensive is slowing, they’re still getting more expensive.”

“So everybody’s been going to the grocery store all year, and that’s a frightful thing in itself, but I think everybody’s just nervous about the presence and the gatherings and the events and the hosting meals. So there’s a lot of stress out there.”

The survey suggests that Canadians are planning to spend 8% less this year on holiday gifts—an average of $595, down from $645 last year.

“The notion that this should be a time of joy and generosity is sharply contrasted by the reality that many will start the new year in debt,” says Li Zhang, financial literacy leader at CPA Canada. “Given consumers are grappling with a consistently rising cost of living, it’s not surprising that the festive season has become a major source of anxiety.”

Sinclair says planning to spend less one thing, but actually pulling it off is another. “One of the things that kind of scares me in my position, in the work we do, is the credit card usage. We know people are going to use their credit cards for holiday spending.” He compares it to Scrooge, with the ghosts of Christmas past coming to haunt you once the holidays are over. “One of the things we’re sort of telling people is really try to manage your spending and manage the credit card usage, which of course is easier said than done. To the extent if you can, use the money you already have rather than get into that cycle of credit card usage. We know a lot of Canadians are already packing credit card debt. So when it comes time to the holidays, if they just start to pile on even further, the debt goes up. Interest costs go up. So, of course, it’s stressful.”

One suggestion from Sinclair is to try and start your shopping early instead of doing it all at once. “I think cash flow management important. I’ve been guilty in the past, about sort of leaving it to December and then it all hits at once. I think budgeting is really important. If you can sit down and map out a budget. What do you need to get? When do you need to get it? Can you stage it over the next few weeks? What do I need to buy for the turkey dinner? Mapping out a detailed plan is a great idea.”

The survey states that younger Canadians are feeling the pressure of holiday spending most acutely this year. Millennials and Gen Z report the highest levels of holiday stress. Many respondents are also bracing for overspending.

Travel is also just simply off the table this season for many Canadians. The survey suggests 57% are opting out of holiday trips.

Charitable giving is also on the decline, with only 24% planning to donate, down from 30% last year.