As Interest Rates Begin to Rise: Our Bromwich+Smith Survey Cuts Deep
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By Bromwich+Smith Staff | 365 words | Reading Time: 1 minutes and 48 Seconds | Date: 2022/03/31
As the country grapples with economic recovery two years into the pandemic, a financial priorities study of 1,519 Canadians, shows people are more likely to address financial difficulties by taking out a loan from family, friends, or a bank, or selling investments or assets – than they are to focus on tackling their debt once and for all.
The survey was released in the same week that The Bank of Canada raised its key interest rate for the first time in four years. The first leg of the survey in January found that half of the country was more stressed to start 2022 than during 2020 lockdowns and 84 per cent worried about inflation and cost-of-living.
Part II of Bromwich+Smith’s Perfect Storm survey asked, “what actions would (you) take in order to find relief from financial difficulty?” 39 per cent of respondents said they would take out a loan/new line of credit from a bank or other financial institution. This was followed by selling investments/financial assets (33%) and borrowing from family or friends (27%).
Much further down the list: selling my home (16%), borrowing from my partner/spouse (12%), consulting with a debt professional such as a Licensed Insolvency Trustee (11%).
Canadians were also asked to rank their top financial priorities for 2022. Here were the responses:
- 55 per cent said having a sufficient emergency fund
- 46 per cent said paying down debt
- 37 per cent said saving for retirement
- 27 per cent said saving for travel/vacation
- 19 per cent said saving to renovate their home
- 15 per cent said changing jobs/finding a job
- 15 per cent said saving up to buy a home
- 13 per cent said improving their credit score
- 12 per cent said saving for their child(ren)’s education
- 7 per cent said having enough insurance to cover their family
What does this tell us? Canadians are struggling especially when it comes to prioritizing paying down debt. We want you to know you don’t have to struggle alone.
If you are feeling financial stress and don’t know where to start, we’re here for you. With Bromwich+Smith we ensure that our expertise will leave you feeling hopeful and confident. Call our Licensed Insolvency Trustees today for a free, no obligation, confidential consultation 1-855-884-9243. Let’s see you flourish!