Nearly one half (48%) of Canadians are $200 or less per month away from not being able to meet all of their bills or debt obligations each month, including 26% who say they already don’t make enough money to cover their bills and debt payments, according to a new Ipsos poll conducted on behalf of MNP.

Residents of Ontario (29%) and Quebec (29%) are most likely to say they already don’t make enough to cover their bills and debt payments, followed by those living in Atlantic Canada (24%), Alberta (21%), British Columbia (19%) and Saskatchewan and Manitoba (17%).

Moreover, it will take some time for Canadians to dig out of the non-mortgage debt that they have accumulated, with the average Canadian with debt saying it will take approximately 7 years before they are debt free, completely ignoring the 15% who believes that they will never be debt-free.

• Most likely to say that they will never be debt-free are residents of Atlantic Canada (28%), followed distantly by those in Saskatchewan and Manitoba (17%), Alberta (16%), BC (15%), Ontario (15%) and Quebec (10%).
• Among those who think they’ll be able to climb out of debt, it will take Ontarians the longest (8 years on average), followed by those in Quebec (7 years), Atlantic Canada (6 years), BC (6 years), Alberta (6 years) and Saskatchewan and Manitoba (5 years).
• Most likely to be debt-free already are residents of BC (50%), and Quebec (45%), followed by those living in Alberta (39%), Ontario (38%), Saskatchewan and Manitoba (37%) and Atlantic Canada (31%).

Given the amount of debt that Canadians hold, and the length of time that it will take many of them to pay off their outstanding debts, it’s interesting to note that four in ten (43%) `agree’ (17% strongly/27% somewhat) that they regret the amount of debt they’ve taken on during their life. A similar proportion (43%) agrees (15% strongly/28% somewhat) that they are concerned about their current level of debt.

A positive note is that a relatively small proportion of the population appears more relaxed in their attitudes towards debt: just one in three (32%) agrees (6% strongly/26% somewhat) that debt is not a big deal to them – it’s just a fact of life, while the vast majority (68%) of Canadians `disagree’ (36% strongly/32% somewhat).

Understanding Insolvency and Bankruptcy…

When it comes to the terms insolvency and bankruptcy, Canadians appear to be not as strong in their knowledge as they could be: six in ten (60%) `agree’ (21%) strongly/39% somewhat) that they are aware of the differences between insolvency and bankruptcy, while four in ten (40%) `disagree’ (15% strongly/25% somewhat), admitting that they’re not aware of the difference.

Moreover, many are unaware of the resources available to them, as only a slim majority (55%) `agree’ (16% strongly/40% somewhat) that they would know where to turn if they were to become financially insolvent, while nearly half (45%) `disagree’ (20% strongly/25% somewhat).

Despite some gaps in their knowledge, four in ten (43%) Canadians `agree’ (17% strongly/26% somewhat) that they personally know someone who has become insolvent, with Quebecers (51%) and Atlantic Canadians (47%) being more likely than those in Ontario (42%), Saskatchewan and Manitoba (40%), Alberta (40%) and BC (37%) to say so.

(This article is from Ipsos)

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

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