Canadians in debt caught with their pants down, seek loans from family, friends, banks – avoid spouses
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TORONTO, March 03, 2022 (GLOBE NEWSWIRE) — As the country grapples with an economic recovery two years into the pandemic, a study of the financial priorities of 1,519 Canadians shows people are more likely to make facing financial hardship by taking out a loan from family, friends, or a bank, or selling investments or assets – they don’t have to focus on settling their debt once and for all.
The survey comes the same week the Bank of Canada raised its key interest rate for the first time in four years. the first part of the investigation in January revealed that half of the country was more stressed going into 2022 than during the 2020 shutdowns and 84% were worried about inflation and the cost of living.
Part II of Bromwich+Smith’s Perfect Storm survey asked the question: “What actions (you) would you take to find relief from financial hardship?” 39% of respondents said they would take out a loan/new line of credit from a bank or other financial institution. This is followed by selling investments/financial assets (33%) and borrowing from family or friends (27%).
Much further down the list are selling my house (16%), borrowing from my partner/spouse (12%), seeing a debt professional such as a Licensed Insolvency Trustee ( 11%).
“The survey results paint a picture of people’s financial fears and priorities,” said Laurie Campbell, director of client financial wellbeing at Bromwich + Smith. “When it comes to meeting financial challenges, you can raise the bridge or lower the water. Faced with this conundrum, it seems that Canadians struggling with debt are focused on changing their creditor’s address rather than reducing their debt. It’s not always the best option.
|What steps would you take to find relief from financial difficulties this year?||Total||18-34||35-54||55+|
|Take out a loan/new line of credit from a bank or other financial institution||39%||41%||42%||34%|
|Sell investments/financial assets||33%||35%||31%||34%|
|Borrow from family or a friend||27%||50%||29%||8%|
|Reduce my living situation (e.g. moving to cheaper rental accommodation, moving in with roommates/family, etc.)||19%||30%||17%||13%|
|Sell my house||16%||8%||15%||22%|
|Borrow from my partner/spouse||12%||19%||13%||6%|
|Consult a debt professional (such as a Licensed Insolvency Trustee)||11%||13%||13%||7%|
|Seek advice about bankruptcy or a consumer proposal||7%||6%||9%||5%|
|Declare bankruptcy or file a consumer proposal||5%||4%||8%||4%|
Canadians were also asked to rank their top financial priorities for 2022. Here are the answers:
- 55% said they have an adequate emergency fund
- 46% said they paid off their debts
- 37% said they are saving for retirement
- 27% said they save for travel/vacation
- 19% said they had saved to renovate their home
- 15 percent said changing jobs/finding a job
- 15% said they were saving to buy a house
- 13% said they improved their credit score
- 12% reported saving for their child(ren)’s education
- 7% said they have enough insurance to cover their family
Survey shows cognitive dissonance between priorities and actions“Actions always speak the loudest. There’s a disconnect between people’s priority of paying down debt and the steps they’re willing to take to actually pay off the debt,” Campbell said. “For those in financial difficulty, a caring professional from Bromwich + Smith is available to help answer questions, prioritize an action plan to help you overcome debt and rebuild your worth.”
A Licensed Insolvency Trustee (like those at Bromwich+Smith) is the only professional authorized to deal with consumer proposals and bankruptcies. SAIs will stop all collection activity as soon as a person enters into an agreement and may reduce the debt owed to a fraction of the original amount.
About Bromwich+Smith’s Perfect Storm Part II surveyFrom January 5-6, 2022, an online survey was conducted with a representative sample of 1,519 Canadian Angus Reid Forum members. For comparison purposes, the sample design would include a margin of error of +/- 2.5 percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding.
About Bromwich+SmithAt Bromwich+Smith, our dedicated team of Licensed Insolvency Trustees and Debt Relief Specialists are committed to rebuilding the value of our clients, while helping to ease the crushing financial and emotional burden they bear. Beyond the financial well-being of our clients, Bromwich+Smith strives to restore the personal well-being and self-confidence of each client. Whether it’s a consumer proposal, bankruptcy, advice or a budget, our clients trust us to find personalized solutions with them to restore them. With offices in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and New Brunswick, Bromwich+Smith helps thousands of Canadians rebuild their worth every year.
Bromwich+Smith’s debt relief specialists are available for a free, confidential, no-obligation initial consultation by phone at 1-855-884-9243 or via www.bromwichandsmith.com.
To arrange an interview with Laurie Campbell at Brorowmich+Smith, please contact:
Parveen Singh [email protected] 437–247-5230
A photo accompanying this ad is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/586b2a7e-c4eb-45b5-bc2b-9e23437112f5