Canadians are alarmingly accepting of debt as a financial strategy.
Even though many are carrying record levels of debt, 62% are comfortable with their financial situation, finds a Hoyes Michalos/ Harris/Decima poll. Further, 26% agree their debt levels are higher than one year ago.
Respondents were asked whether they could come up with $2,000 in a month if an unexpected expense arose. The majority (55%) are very confident they could raise the funds, and 92% would consider borrowing to come up with 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.
And 26% said they couldn’t raise the money no matter how much time they were given, which suggests some are already at their maximum borrowing capacities, he adds.
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%).
“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,” says Douglas Hoyes, a bankruptcy trustee with Hoyes, Michalos & Associates Inc.
Here are some articles to help clients deal with debt.