Credit Awareness - National Consumer Overview

www.crediteducationweekcanada.com
National Consumer Survey, May/June 2007
Study Overview/Fact Sheet

 

Canadians’ ability to retire

53% of Canadians do not contribute to their RRSP each year

74% of Canadians who make over $100,000 per year annually contribute to their RRSP; however, only 26% of Canadians who make less that $30,000 per year contribute annually to their RRSP.

13% of Canadians feel that based on their current situation they will never be able to retire and only 4% of Canadians feel they will be able to retire before the age of 50

30% of Canadians feel they will not be able to retire until after the age of 65

 

Canadians are spending more than they are earning

55% of Canadians have monthly expenses that exceed their monthly income at least once a year

92% feel that Canadians have more debt than they did 5 years ago, however, only 7% perceive that it makes more sense to carry a larger amount of debt now opposed to 5 years ago

17% of Canadians will need to make major changes to spending habits and will need to consider an action plan to help avoid bankruptcy if their income were to drop by 10%

For 14% of Canadians, their monthly expenses exceed their monthly income more than 6 months of the year

6% of Canadians have expenses that exceed their monthly income 12 months of the year

Some Canadians are not aware of the impact of interst rates

26% of Canadians do not consider the consequences of a rising interest rate when borrowing money

28% of Canadians do not know the interest rate on their credit cards

Many Canadians need credit education

80% of Canadians do not know their credit score

63% of Canadians do not know how their credit score is determined

40% of Canadians do not pay their credit card off in full each month

86% of Canadians believe that more Canadians are in credit distress now than they were 5 years ago.

53% of Canadians believe that credit is too easy to obtain in Canada

43% of Canadians have more than 3 credit cards

37% of Canadians only pay the minimum required amount on their credit card each month opposed to paying it off in full

14% of Canadians are surprised by the amount owed on their credit card when they receive the bill

30% of Canadians carry a total balance on their credit card each month that is greater than $1000 (on average)

Only 37% of Canadians who make less than $30,000 per year pay their credit card off in full each month; whereas 73% of Canadians who make $100,000 per year pay it off in full each month

Canadians’ perception of the housing market

58% of Canadians feel that in the next 24 months, the housing market will continue to grow and prices will rise

42% of Canadians think the housing market will stay the same or decline in the next 24 months

4% of Canadians think that in the next 24 months, the housing market will decline by more than 10%

 

Few Canadians take advantage of financial management services

61% of Canadians do not have a financial advisor

52% of Canadians are not aware of any free credit and debt counseling services available in Canada

Only 5% of Canadians obtain advice about credit and debt related issues from a free counseling service

22% of Canadians obtain information about available credit through direct mail, whereas only 5% of Canadians obtain information from an industry expert.

59% of Canadians who make over $100,000 per year have a financial advisor, whereas only 25% of Canadians who make less than $30,000 per year have a financial advisor

 

Canadians need to learn to budget more effectively

53% of Canadians do not have a personal/household budget

26% of Canadians say their number one concern surrounding debt /credit management is that they do not feel they are adequately prepared to deal with unexpected emergency expenses.

34% of Canadians who have a personal/household budget do not follow it regularly

 

Regional findings

Ontario:
30% of people from Ontario have 4 or more credit cards

18% of people from Ontario don’t think they will be able to retire until after the age of 76

Atlantic Canada:
63% of people from Atlantic Canada do not invest in their RRSP each year, opposed to 50% o Canadians in the rest of the country

Only 39% of people from Atlantic Canada pay their credit card off in full each month, whereas 53% of Canadians from the rest of the country pay it off in full each month

Quebec:
41% of people form Quebec regularly stick to a personal/household budget, however, only 29% of the rest of Canada have and regularly stick to a household budget

Demographic-Specific Findings

51+ 
80% of Canadians between the age of 51 – 60 consider the consequences of a rising interest rate when borrowing money

21-30
Only 66% of Canadians between the age of 21-30 consider the consequences of a rising interest rate when borrowing money.

Family
31% of Canadians with more than 4 kids contribute annually to their RRSP, where as 56% of Canadians who have no kids contribute each year.

Survey Methodology

These are some of the findings from a Torque Market Intelligence poll conducted on behalf of Credit Canada. The online survey was launched on May 24, 2007, with the final results submitted on June 26, 2007. It is based on a randomly selected sample of 4,487 adult Canadians. The margin of error is ±1.46 percentage points (19 out of 20).

 

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