A significant share of consumers tend to be late in making their monthly payments, according to a new Advocis study
Amid ever-mounting costs and fears of a possible recession, inflation concerns cut across every demographic, according to a new survey by Advocis.
“At a time of heightened economic uncertainty, a disparity in savings is resulting in a heightened period of hardship for Canadians, especially those with lower incomes,” Advocis said, adding that its latest poll results “reveal a distressing outlook from financial advisors and financial planners across the country, a perfect storm that could spell disaster for those with limited financial literacy skills.”
The study found that 40% of financial advisors have clients who were late in making their monthly credit card or mortgage payments, while 47% had clients who needed to get loans to purchase or refinance their cars.
“The increased burden of living expenses and heightened interest rates have resulted in a financial challenge, as the weight of debt has become even more significant for Canadian households,” said Julie Martini, COO of Advocis. “Additionally, the majority of Canadians have not experienced a proportional increase in their incomes to match the escalating costs of everyday purchases.”
Bank of Canada keeps interest rates unchanged, bringing relief to homeowners. However, the possibility of future rate hikes looms if inflation remains stubborn, says Ratehub CEO James Laird. https://t.co/HJz3qWuKxK#MortgageIndustry #HousingMarket #InterestRates #RateHike
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 30, 2023
Canadians recognize the importance of adjusting to current financial realities
Crucially, 56% of respondents said that they had clients who have reached out to adapt their financial plans to the current environment.
Another 66% said that clients are exhibiting an ”increased appetite” for improving their overall financial literacy and resiliency.
“One positive outcome amid these challenging circumstances is the increased awareness and emphasis on emergency savings,” said Emma Lang, CFP at Branstone Financial Strategies Inc. in Vermilion Bay, Ontario. “Many clients are recognizing the importance of having a financial safety net in place, particularly during uncertain economic times.”
