In the latest study conducted by Ipsos for insolvency practice MNP Debt, two-thirds of Canadians polled said that they had significant regrets over their debts.
The survey found that 41% of Canadians regretted the volume of debt they have taken on in their lives. A further 37% are troubled by their current debt levels, and an alarming 44% are fearful that they will not be able to service all living and family expenses in the next 12 months without incurring further debt.
“There are even more who are technically insolvent but they just haven’t sought debt help yet. Those who were dangerously close to being unable to pay their bills are struggling even more now with interest rate increases,” MNP licensed insolvency trustee Donna Carson said.
The most notable sources of regret cited by respondents were random purchases on their credit cards (33% of Canadians) and uncontrolled daily purchases of items like coffee (18%).
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Other factors that Canadians blamed for their debt were cars (12%), home add-ons like furniture (12%), clothing (11%), electronics (10%), alcohol (9%), choice of spouse/partner (9%), vacation/travel expenses (8%), bad investments (8%), student debt (8%), and gambling (6%).
“An unexpected expense – even as simple as an increase in interest expenses – can be a catalyst for bankruptcy. The biggest issue is that so many do not have a budget or an emergency savings plan. This can lead to crippling debt regret,” Carson added.