The season of giving is basically upon us.
But according to a recent survey, Canadian consumers are in many cases buying more than their bank accounts allow.
The Manulife Bank survey, which was made public late last month, indicates that despite claiming to understand debt management, many Canadians are not meeting their debt reduction goals.
"More than half of Canadians claim good knowledge of debt management (54 per cent), however, household debt has reached record highs and only a minority (41 per cent) are comfortable with their debt," reads the press release.
And while plenty of us claim that being debt-free is a priority, less than a third of debt holders, 31 per cent, reached their debt reduction goals in the past year. All of this despite the fact 53 per cent of Canadians believe financial challenges take a toll on mental or emotional health, while roughly one third, 34 per cent, on physical health, states the release.
Perhaps exacerbating the situation is people's pride.
"More than 30 per cent of Canadians are embarrassed or unsure of whom to talk to, and 55 per cent seldom talk about (their) own debt with friends or family."
The Manulife Bank of Canada poll surveyed 2,409 Canadian homeowners and renters in all provinces between ages 20 and 69 with household income of more than $40,000. The survey was conducted online by The Nielsen Company between October 11and 23. National results were weighted by province and age.
"When it comes to debt, knowledge alone does not equal power," said Rick Lunny, president and CEO of Manulife Bank. "There is a clear gap between what Canadians say they know about managing debt, their good intentions, and their ability to do something about it."
Buying on credit a sale item that will end up taking a long time to repay plus interest seems almost counterintuitive. Chances are the product will end up costing much more than if it had simply been purchased at regular price in one go with enough money.
Of course in a time when roughly half of Canadians live paycheque to paycheque, fully paying for presents upfront is not always possible. So for those of us who are not exactly flush with disposable income, perhaps worth consideration is exploring other ways to remind the special people in our lives just how much they mean to us. Someone who barely ever touches the dishes? Roll up your sleeves! Someone who excels at the culinary arts, share your talent!
Giving our time and ourselves is far more meaningful than spending money enriching multi-millionaires and billionaires at our own expense while we barely manage to tread water as we inundate ourselves with additional debt.
Showing what our loved ones mean to us should not have to mean breaking the bank ó even if corporations spend countless millions of dollars trying to convince you otherwise.
