Canada Loans Study Finds Credit-Struggled Canadians Trust Their Financial Literacy, But Reality Paints a Different Picture

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TORONTO, 23 january 2020 / CNW / – A recent study of 1,665 Canadians struggling with credit constraints, conducted by Loans Canada, the leader of the country loan comparator site, found inconsistencies between respondents’ perceived and actual financial literacy. Technical director Cris Ravazzano explains, “The purpose of this survey was to learn more about Canadians with credit problems and the role their financial literacy plays in the financial decisions they make.

The study found that 67% of respondents considered themselves financially well informed and agreed that they made informed decisions about their finances.

However, when they were tested on their financial behavior and decision making, their performance was not in line with their claims. These particular findings stood out.

  • 43% of 67% don’t track their spending or spending habits
  • Two-thirds of 67% don’t pay their credit card bills in full every month
  • 72% of the 67% don’t save regularly
  • 44% of 67% think lenders are allowed to ask for upfront payments on personal loans
  • 30% of 67% think paying minimum payments on a credit card prevents them from being charged interest

The study takes a closer look at how credit-strapped Canadians manage their finances and deal with debt and credit issues.

Other information :

  • 46% of respondents are stack of loans for emergencies, unforeseen expenses or to make ends meet. Stacking involves taking out multiple loans from multiple lenders, resulting in multiple monthly payments to different vendors, multiple credit problems, higher risk of default, and often a breach of loan terms.
  • Almost 40% of respondents do not realize that payday loans are the most expensive form of borrowing.
  • 38% of people often fail to compare lenders before applying for a loan.
  • 60% of people rarely call a lender before applying for a loan.
  • 33% of respondents think that cancellation of old credit cards can help them build better credit, which is actually incorrect.
  • Almost half of Canadians short of credit have high interest debt in the form of payday loans (45%) and credit cards (55%).
  • People who claim to have financial knowledge generally have higher debt levels than people who disagree with this notion.

Financial literacy and financial well-being are closely linked. Credit education is essential to improving the financial health of Canadians short of credit. “Our results show that many Canadian consumers still have a lot to learn about their financial health, and we believe that financial education plays a very important role in financial decision-making. We will continue to make financial literacy a key part of our content strategy moving forward, ”said Caitlin Wood, editor-in-chief of Loans Canada.

To see a detailed summary of this study, visit this page,
Study: Financial literacy versus financial well-being and credit-constrained Canadians

About Loans Canada

Launched in 2012, Loans Canada is the country’s leading loan search and comparison platform. Millions of Canadians visit LoansCanada.ca each year to take advantage of their credit education resources or to research credit products. Loans from Canada Proprietary Lender Matching technology instantly connects borrowers to lenders and other financial solution providers. For more information, please visit www.loanscanada.ca.

Survey methodology

Of January 7, 2020, To January 16, 2020, a survey was conducted by Loans Canada. A representative sample of 1,665 users, from everywhere Canada, were asked about their financial health and literacy. Participants asked 22 questions and the data was collected using Google Forms.

SOURCE Canada Loans

For more information: Cris Ravazzano, [email protected]

Related links

https: //canada loans.ca

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