Fifty-five per cent of Canadians say they will struggle to make ends meet if interest rates went up
The mountain of debt is a tough one to shake according to a recent poll by BDO Canada. The poll revealed a quarter of Canadians say they will never be able to pay off their debt in their lifetime.
A troubling statistic because of those who are suffering from deb disease, 55 per cent of respondents say they would have a hard time making ends meet if interest rates increased.
“This is a sign of the times. Consumer debt continues to grow and Canadians are stretched thin,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
Many Canadians are plagued with debt disease. A plague that is affecting the lifestyle of many consumers in a life-altering way. The BDO survey also discovered the following:
- 46 per cent say the rising cost of living means less money goes toward paying outstanding debt
- 58 per cent of homeowners believe the value of their home will go up, 30 per cent believe their property value will remain unchanged
- 40 per cent of parents believe their children’s standard of living will be better than their own, 29 per cent believe their children will be worse off
The poll also revealed 73 per cent of Canadians are carrying a debt load and the poll suggests there are indicators saying the age cohorts most affected by this trend are those from 35 to 54 years old.
“It’s concerning that being debt free is such a distant goal for many Canadians,” says Doug Jones, president, BDO Canada Limited in a statement.
To help Canadians who feel their backs are up against the wall in debt, Consolidated Credit offers the following tips to help consumers manage:
- Sit down and get real with your situation. Examine your needs vs. wants. If you have a reoccurring expense you can get rid of, it is time to get rid of it.
- Create a budget and factor all of your expenses. When you do not plan a budget, you are at risk of over spending your hard-earned money.
- Put that plastic away. Get used to taking money out of your wallet again by adopting a cash-only lifestyle.
- Drop pride by the wayside and accept help. Recognize when you have a problem with managing your debt and seek help from a trained credit counsellor.
If you are struggling to manage your household bills and you do not know where to turn for help, you can call one of our trained credit counsellors to help you manage with your debt. Call Consolidated Credit at 1-888-294-3130 and one of our credit counsellors will help you cope with your debt stress.