MNP Consumer Debt Sentiment Survey Update

Lack of financial literacy intensifying Canadians' debt binge - Seite 2

Despite the anxiety around debt and the lack of skills to manage it, the vast majority of Canadians have not sought out professional help.

"Debt denial is a big problem. Many feel they can handle it on their own, or they don't know where to turn, or they are too embarrassed to get help," says Bazian.

Canadians with a confident understanding of finances were significantly more likely to have reduced their debt load over the past twelve months, compared to those who aren't as confident about finances.

"If you are using credit to pay for basic expenses or to service other debts, it's a sign you need help right away," advises Bazian adding that it is important to seek advice from reputable sources.

Licensed Insolvency Trustees are the only debt professionals licenced by the federal government and legally authorized to provide services under the Bankruptcy and Insolvency Act.

Key poll highlights include:

• Over half (52%) of Canadians are just $200 or less away from financial insolvency at the end of the month (down 4 points from September).
• Three in ten (31%) say they already don't make enough money to cover their bills (down 2 points since September 2016, but up 3 points compared to February 2016).
• One in ten Canadians (10%) are left with just $100 or less at the end of the month (down 3 points from September).
• Nearly half (48%) agree they're concerned about how much debt they currently have, down 4 points from September 2016. Those who aren't confident about their understanding of financial concepts (like credit scores, the impact of interest rates on debt payments, bankruptcy or insolvency) are significantly more likely to be concerned about their current debt (61%).
• Half (49%) agree they regret how much debt they've taken on in their life (down 1 point), while nearly four in ten (37%) regret the debt they've taken on in the past year alone. Those with a less confident grasp of financial matters are particularly likely to regret the debts they've accrued over the past year (46%) compared to those who have a stronger understanding (35%).
• A majority of Canadians (58%) agree that when it comes to their personal debts, they'd go back and do things differently if they could. Canadians who aren't particularly confident about their financial knowledge (67%) are more likely to want to go back and do things differently.
• The vast majority of Canadians are not very confident in their financial planning abilities.

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