Money mistakes = long-term debt
New survey results have identified money mistakes Quebecers are making that could be contributing to the mounting consumer debt in the province. Over half admit to engaging in risky financial behaviours over the past year.
Paying only the minimum balance on their credit card was the most common, with one in five (19%) admitting to doing so.
Some people are making reckless and impulsive financial decisions. But others are acting out of desperation. Cash-strapped, already saddled with debt and struggling to navigate, one in ten (10%) admitted to borrowing money that they know they can’t pay back.
Being lured by deals and special offers (19%) and paying only the minimum balance on a line of credit (12%) were other common financial mistakes among Quebecers. One in ten said they spent money just to ‘keep up with the Jones’ (9%), made a major purchase on credit without paying it off right away (10%), or bought something on credit that requires no payments to start (8%).
These risky behaviours could be the result of financial illiteracy. Many people may not be considering the long-term ramifications of seeking out fast money.
While three in ten (31%) Quebecers say they are without debt, it seems that about one in ten (12%) are suffering from their money mistakes and say that they will never be debt-free. Delaying getting help only exacerbates the situation..
Many Quebecers believe they can be debt-free, but will be struggling for years to come. Of the remaining 57 per cent, they estimate it will take about six years and ten months to pay off their debts.
Angela Joyce, MNP