KITCHENER, ON, Sept. 24, 2012 /CNW/ - Canadians are alarmingly accepting
of debt as a financial strategy, according to a recent Hoyes Michalos/
"It's frightening to see that Canadians have become totally blasé about
debt - it's becoming their new 'normal' and they're numb to this
dangerous trend," says Douglas Hoyes, a bankruptcy trustee with Hoyes,
Michalos & Associates Inc.
The survey reveals that Canadians are far too comfortable carrying high
levels of debt. Respondents were asked how comfortable they were with
their current financial situation and how confident they were that they
could come up with $2,000 within a month if an unexpected need arose.
While the majority of Canadians (55%) are extremely or very confident
they could raise $2,000 with a month, 92% would consider some form of
borrowing to come up with at least some of the cash.
"It appears that saving money 'for a rainy day' has been replaced with
access to debt to deal with financial problems," says Ted Michalos, a
bankruptcy trustee with Hoyes, Michalos & Associates Inc. "What's even
more shocking is that one in five Canadians believe it would take them
two months or longer to come up with $2,000, even if they could borrow,
and of those who could not raise the money within a month, 26% said
they couldn't raise the money no matter how much time they were given.
That's a lot of people who are already at their maximum borrowing
capacity," adds Hoyes.
"Canadians are carrying record levels of debt and yet, surprisingly, 62%
of those surveyed are comfortable with their financial situation. That
is quite a disjoint. It's concerning to see that access to credit and
taking on more debt has become an accepted part of financial planning,"
The research also reveals that while 45% of Canadians say they have
never faced a debt problem, 70% admit to needing immediate help with
day-to-day financial matters, including paying down debt (20%),
increasing savings (16%), and improving cash flow (13%).
"For many, the use of debt to not only pay for big ticket items like
cars, but also to cover day-to-day living expenses, has become
commonplace," adds Hoyes. The trend does not seem to be reversing. One
in four Canadians (26%) agrees their debt level is higher than one year
earlier. "The best advice we can offer all Canadians is to make a plan
now to deal with emergencies and start paying down debt today,"
The Harris/Decima survey was completed online using Harris/Decima's
proprietary online panel. This data was gathered in a sample of 1,010
Canadians between August 15th and 23rd, 2012. A probability sample of
this size has a margin of error of +/-3.1%, 19 times out of 20.
Hoyes, Michalos & Associates Inc., a consumer proposal and trustee in
bankruptcy firm with offices throughout Ontario, helps people in
financial difficulty. Further information is available at www.hoyes.com/high-debt.htm
SOURCE: Hoyes, Michalos & Associates Inc.
For further information:
Douglas Hoyes, CA, Trustee in Bankruptcy, firstname.lastname@example.org
Ted Michalos, CA, Trustee in Bankruptcy, email@example.com
1-866-747-0660 or 310-PLAN