A sizeable proportion they would be "embarrassed" to seek professional assistance
One in three Canadians (32%) said that they have no idea how to get out of debt or where to turn for relief, according to a recent poll conducted by Ipsos on behalf of MNP LTD.
Fully half (50%) also said that they have difficulty trusting professional companies to help them get out of debt, while 47% said that they would be “embarrassed” to seek assistance in this regard.
These are troubling statistics in light of the Canadian household debt-to-income ratio reaching 186% as of the end of 2021.
Read more: BoC official: Household debt levels could worsen impact of rate hikes
Grant Bazian, president of MNP LTD, added that the alarming lack of financial literacy could put indebted Canadians at greater risk, especially considering that interest rate hikes are likely to go even higher this year.
Nearly one in four Canadians (24%) said that they don’t possess a “solid understanding” of how interest rate hikes affect their finances.
“All debt advice is not created equal. Canadians should be cautious of unlicensed insolvency service providers who may make bold claims guaranteeing to make you debt-free – only licensed insolvency trustees can utilize the federal Bankruptcy & Insolvency Act to discharge individuals from debt,” Bazian said.
