Credit Canada report suggests that many people are expecting the government to bail them out
Canadians are great at recognizing when their debts are getting out of control but many are playing a risky game when it comes to dealing with the issue.
A new survey from Credit Counselling Canada shows that more than 9 in 10 people realize that always borrowing to make it to payday and only ever paying the minimum interest payment rather than the principal are signs of trouble.
But 23% said that, rather than seeking help – something November’s Financial Literacy Month is promoting - they would simply bury their heads in the sand and pretend they don’t have a problem.
According to the non-profit’s director of education and community awareness, this emu-like behaviour stems from the financial stress that many are feeling because of the pandemic.
People are feeling unhopeful. People have a lack of control,” she told HuffPost Canada, continuing that “wishing and hoping is not a good financial strategy.”
Unsure where to turn
The survey, conducted by Angus Reid Institute in August, reveals that 4 in 10 respondents are unsure where to turn for debt help.
When asked about the greatest challenge to seeking debt assistance, around 70% said each of: lack of focus on financial wellbeing and ongoing financial education; lack of transparency around fees/conflict of interest; and lack of transparency around an organization’s motives.
However, 72% of respondents would seek help from a financial or debt professional.
The 2020 Canadian "Got Debt?" Survey has just been released by @Creditcc. It offers a snapshot of Canadian attitudes on debt and debt help. It's pretty eye-opening, so check it out! #DebtHelp #MoneySurvey #FinancialLiteracyMonth https://t.co/PfudlezX4Q pic.twitter.com/nqDScOdJga
— Credit Canada (@creditcanada) November 20, 2020
