Do Canadians feel worse about their financial situation now versus the start of 2022?
Over a third do, according to the latest findings of the 2023 Consumer Debt Report.
NEW WESTMINSTER, BC, Jan. 31, 2023 /CNW/ - Barely a month into 2023 and Canadians are already facing a financial onslaught of skyrocketing costs, and subsequently, increasing debt loads. The strain is leaving many consumers in a state of anxiety and pessimism about their financial situation. Those were some of the findings of the 2023 Consumer Debt Report by the Credit Counselling Society (CCS) among members of the Angus Reid Forum. Surveyed on their financial health and perceptions of financial assistance, and how they were managing their savings, debt and other financial issues, Canadians weren't particularly optimistic in their responses.
Facing a flood of financial challenges, six-in-ten Canadians, surprisingly do not anticipate a change in lifestyle if inflationary pressures continue. Many are struggling to stay afloat as debt levels, interest rates, and financial anxieties continue to rise.
"It's alarming to see how much financial pressure Canadians are facing this year," says Scott Hannah, President & CEO of the Credit Counselling Society. With the cost of essentials increasing the way they have; a significant number of people are running out of options when it comes to making ends meet."
Rather than building up their finances for the challenges ahead, two-in-three Canadians carrying non-mortgage debt, actually had to take actions like drawing from savings (41%), using credit instead of cash (36%), and cutting back on savings (35%) to manage the increasing expenses. Another one-in-ten (10%) of respondents, said they were either unable to keep up with minimum payments or were deferring payments.
Despite the financial struggles facing them, Canadians continue to have predominantly negative associations with reaching out for financial help themselves. "It may seem counterintuitive," explains Financial Educator, Mark Kalinowski, "but there is still so much stigma around talking about money – debt in particular, that many people try to avoid it altogether, which just compounds the problem." Younger Canadians (18-34) in particular, were more likely to say reaching out for financial help would make them feel inadequate (27%), out of options (43%), helpless (26%) or [like a] failure (27%). Even more surprising, Canadians with the highest debt loads feel the worst about reaching out for financial help. With an unprecedented amount of pressure on Canadians' finances, Kalinowski adds "That's why it's absolutely crucial, to reach out if you need help. Waiting will not improve the situation, and can impact other areas of your life."
That impact on mental health is reflected in the report, with three-in-ten (30%) Canadians feeling pessimistic about their financial situation, and very few feeling fully optimistic heading into 2023.
"Those ongoing financial struggles are not just straining people's budgets," states Anne Arbour, Director of Strategic Partnerships and Education at CCS. "The constant worrying, and stress is impacting people's mental health, especially if they don't know that help is available."
With a significant number of Canadians struggling financially, CCS's message is clear. "You do not need to feel ashamed about your situation," Hannah says, firmly. "You do not need to be afraid to ask for help. Trusted and professional help is available often just a phone call away."
About The Credit Counselling Society (CCS): The Credit Counselling Society is a non-profit organization dedicated to helping consumers manage their money and debt better. CCS provides free, confidential credit counselling, debt repayment options, budgeting assistance and financial education.
About Angus Reid Forum surveys: The precision of Angus Reid Forum online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 2.6 percentage points, 19 times out of 20, had all Canadians been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
SOURCE Credit Counselling Society
Media Inquiries: The Credit Counselling Society has spokespeople from across Canada available for interviews to discuss this topic as well as any other relevant financial topics. Please feel free to reach out to the number below: Monika Ritchie, Media & Content Specialist, Direct: 604.636.0227, Email: [email protected]
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