A recent survey indicates that almost half of Canadians have insufficient funds to deal with a minor emergency or an unforeseen cost. This means that they will need to rely on a credit card or loan instead which could push them into long term debt. The problem will then get worse as these people are then even less able to save money for future events and they will rely on credit even more. It is then a steep spiral down to insolvency and a bankruptcy filing. It is important that Canadians start to save money and build up their emergency funds.
One way to save is to set up preauthorised debit from your chequing account to your savings account on your pay day. That way the money is taken before it can be spent on other things. Reliance on credit has very much become the norm and this mindset will dramatically affect the financial stability of Canadians unless addressed through financial education in schools and the community organisations.
The full article may be read here : https://www.bnnbloomberg.ca/drowning-in-debt-47-of-canadians-plan-to-borrow-to-cover-basic-costs-survey-shows-1.1338497