- Your Ottawa Mortgage
Two-thirds of Canadians regret their debt – study
by Ephraim Vecina Sep 2018
In a new study conducted by Ipsos for insolvency practice MNP Debt, fully two-thirds of Canadians expressed significant debt regrets.
41% of respondents regretted the amount of debt they have taken on in their lives, and 37% are troubled by their current debt levels.
33% regretted making random purchases on their credit cards the most, and 18% bemoaned their unrestrained daily purchases (such as that of coffee).
Other notable sources of regret cited by Canadians were cars (12%), home add-ons like furniture (12%), clothing (11%), electronics (10%), alcohol (9%), choice of spouse/partner (9%), vacation/travel expenses (8%), bad investments (8%), student debt (8%), and gambling (6%).
Read more: Average monthly payments now much higher compared to last year
MNP deemed the survey results especially troubling in light of the fact that 44% of Canadians are anxious that they will not be able to service all living and family expenses in the next 12 months without incurring further debt.
“There are even more who are technically insolvent but they just haven’t sought debt help yet. Those who were dangerously close to being unable to pay their bills are struggling even more now with interest rate increases,” MNP licensed insolvency trustee Donna Carson said.
“An unexpected expense – even as simple as an increase in interest expenses – can be a catalyst for bankruptcy. The biggest issue is that so many do not have a budget or an emergency savings plan. This can lead to crippling debt regret.”
Higher rates to choke indebted households further