Credit Canada

Canadians Are Woefully Ill-Equipped To Manage Their Money

The results of a national consumer survey on basic personal finance and credit awareness should be shocking, but unfortunately they are not.

Released on the first day of National Credit Education Week, the Credit Canada survey of 4,000 Canadians paints a dreadful portrait of the state of personal finances in our nation.

Among the findings:

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

- 26% don't consider the consequences of a rising interest rate when borrowing money.

- 28% don't know the interest rate of their credit cards.

- 53% of Canadians don't contribute to their RRSP each year.

- 55% admit to having more expenses than income at least one month per year.

- 61% don't have a financial adviser.

This is National Credit Education Week's inaugural year. It was launched by Credit Canada and Capital One Canada on Tuesday in an effort to "empower Canadians to make wise financial decisions," according to the organizers' information.

The survey was completed in an effort to measure where Canadians stand when it comes to credit and personal finance.

"The findings of this survey are a call to action," Valentine Lovekin, president of Credit Canada's board, said Tuesday. "To know that 90% of Canadians feel that they have more debt today than they did five years ago is an obvious indication that Canadians need to learn how to manage their money better."

No kidding. In this era of consumerism and break-neck consumption, we clearly need to stop and smell the interest rates and start saving for a rainy day.

"Clearly, Canadians are struggling with the financial basics and we hope that Credit Education Week can be a first step to help Canadians acquire the knowledge and skills they need to take control of their financial desitiny," said Lovekin.

Consider this scary survey finding: 17% of Canadians will need to make major changes in spending habits and will need to consider an action plan to help avoid bankruptcy if their income were to drop by 10%.

Don't delay -- if you don't have the skills to bring your spending and credit use under control, find someone who does.

For more information, tools and contacts who can help you, go to www.crediteducationweekcanada.com.

*Reproduced with permission - Sun Media Corp.