Many Canadians are struggling with everyday expenses and more than half feel they are not ready for several significant life events.
That includes 57% of rate their financial readiness to buy a home as “poor” or “terrible”, rising to 60% among women, 67% of millennials, and 76% of those on lower incomes.
The BDO Canada Affordability Index, released this week in association with Angus Reid, also reveals that 53% of Canadians are living paycheque to paycheque while a quarter find their debts overwhelming.
A quarter of respondents say they don’t have enough money for their needs and 42% say their finances fall short of their wants.
"Affordability and debt challenges continue to weigh on Canadians, and what our Affordability Index reveals is that, over time, the cumulative effects have a significant impact on financial goals," says Doug Jones, president of BDO Canada's Financial Recovery Services practice. "However, for people with unmanageable debt, a Licensed Insolvency Trustee can help them understand their options and become more financially prepared for the future."
Credit card debt
More Canadians are carrying credit card debt (57% in 2019 compared to 53% last year) and 31% say that debt is increasing due to income constraints.
Three-in-10 (31%) Canadians have delayed paying off their credit card balances because they can't afford it and four-in-10 have a non-mortgage debt load of over $20,000.
These debts are a key reason that respondents, especially Gen-Xers, are facing delay in their retirement.
