As Canada observes its first-ever Debt Literacy Month this March, a comprehensive Ipsos survey reveals concerning patterns in how Canadians approach debt management and financial well-being. The initiative couldn’t be more timely, with the research highlighting significant knowledge gaps and troubling financial behaviors that span various demographic groups across the country.
Canadians’ Complex Relationship with Debt Assistance
The survey findings paint a nuanced picture of how Canadians view seeking help for financial challenges. On one hand, there’s widespread agreement that reaching out for assistance should carry no stigma, with 80% of respondents endorsing this view – though this represents a slight 4-point decline from 2019 levels. Yet despite this apparent openness, deeply ingrained barriers prevent many from taking the crucial step of seeking professional guidance when facing financial distress.
Nearly half of Canadians (48%) admit they would feel embarrassed to pursue help even if their financial situation deteriorated to the point of considering bankruptcy – a 2-point increase from 2019. Even more telling is the 9-point surge in those who say the stigma surrounding bankruptcy actively prevents them from seeking assistance with their debt problems, now standing at 40% of respondents.
For many Canadians, denial appears to be a significant obstacle. Two-thirds (66%) indicate they haven’t sought financial help because they don’t believe their situation is “serious enough” to warrant intervention. Simultaneously, 63% cite concerns about potential debt-relief scams as a reason for avoiding professional assistance.
The knowledge gap presents another substantial barrier, with over a third of Canadians (36%) acknowledging they simply don’t know how to get out of debt or where to turn for guidance – a concerning 6-point increase from 2019. This uncertainty is compounded by widespread distrust, as 53% of respondents express difficulty trusting professional companies that offer debt management services, a figure that has remained essentially unchanged since 2019.
Demographic Disparities in Debt Attitudes
While gender differences in debt attitudes appear relatively minimal, the survey does reveal that men (43%) are somewhat more likely than women (37%) to report that bankruptcy stigma prevents them from seeking help with their financial challenges.
Age, however, emerges as a far more significant factor in shaping attitudes toward debt and help-seeking behaviors. The survey identifies a clear generational divide, with younger Canadians demonstrating markedly higher levels of financial distress and barriers to seeking assistance compared to their older counterparts.
Canadians between 18-34 and 35-54 years old exhibit strikingly similar patterns in their relationship with debt. Both age groups report significantly higher rates of difficulty trusting professional debt assistance companies (62% and 60% respectively) compared to those aged 55 and older (40%). This generational gap persists across various measures, including feelings of embarrassment about seeking bankruptcy-related help (61% for 18-34 year-olds, 52% for 35-54 year-olds, versus just 34% for those 55+).
Perhaps most concerning is the prevalence of debt fatalism among younger Canadians, with 51% of both the 18-34 and 35-54 age groups believing they will never become debt-free, compared to 34% of older Canadians sharing this pessimistic outlook. The need for external assistance is similarly pronounced along age lines, with 56% of young adults and 51% of middle-aged Canadians acknowledging they need help to escape debt, in stark contrast to just 27% of those 55 and older.
Regional Variations in Financial Challenges
The survey reveals notable geographic differences in how Canadians approach debt management and financial assistance. Alberta stands out as particularly troubled, with residents reporting the highest rates of several concerning indicators. Albertans lead the country in difficulty trusting debt professionals (58%), feeling stigmatized around bankruptcy (45%), and uncertainty about where to seek debt assistance (40%).
The prairie province also shows elevated levels of financial distress, with Albertans more likely than the national average to report needing help getting out of debt (51%), feeling overwhelmed by their financial situation (52%), and expressing concerns about potential scams in the debt relief sector (67%).
Ontario, Canada’s most populous province, also demonstrates above-average financial strain. Ontarians exceed national averages in reporting the need for debt help (49%), feeling overwhelmed by their financial circumstances (52%), and expressing concern about how bankruptcy might impact their credit scores (59%).
The Income Factor in Financial Vulnerability
The survey data confirms what many might expect: income level significantly influences Canadians’ experiences with debt and financial hardship. Lower-income households, particularly those earning under $40,000 annually, consistently report greater financial challenges across multiple dimensions.
In this income bracket, 56% of respondents indicate they need assistance getting out of debt – a stark contrast to the 33% of those earning over $100,000 who express the same need. The emotional impact of financial struggle is similarly pronounced among lower-income Canadians, who report higher rates of feeling overwhelmed by their financial situations (53%) and experiencing embarrassment about seeking help (50%). Nearly half (49%) of those earning under $40,000 indicate that stigma surrounding bankruptcy prevents them from getting the assistance they need.
Troubling Financial Behaviors Across the Population
Beyond attitudes and perceptions, the Ipsos survey reveals concerning financial practices that have become commonplace for many Canadians. A quarter of respondents (26%) report having made only minimum payments toward their credit card balances in the past year – a figure that has remained consistent with previous survey periods.
The data points to ongoing accumulation of debt, with 22% of Canadians having skipped or delayed bill payments, 20% reporting increased credit card debt (a slight 2-point decrease), and 17% making only minimum payments on lines of credit (also down 2 points from previous findings).
Financial distress has driven some Canadians to take more drastic measures, with 18% reporting they’ve sold personal belongings to make ends meet. Additionally, 16% acknowledge borrowing money they cannot afford to repay quickly, potentially deepening their debt problems.
Gender Patterns in Financial Behavior
While attitudes toward debt show minimal gender differences, actual financial behaviors reveal more distinct patterns between men and women. Female respondents demonstrate somewhat higher rates of certain concerning financial practices, including making only minimum credit card payments (29% compared to 22% of men), skipping or delaying bill payments (24% versus 19%), selling personal belongings due to financial necessity (21% compared to 16%), and increasing reliance on friends or family for financial support (18% versus 15%).
However, the survey indicates that men and women engage in other potentially problematic financial behaviors at similar rates, including accumulating additional credit card debt, borrowing amounts they cannot readily repay, and making hardship withdrawals from savings or investment accounts.
Age-Based Differences in Financial Management
Age emerges once again as a crucial factor when examining specific financial behaviors. Younger and middle-aged Canadians (18-34 and 35-54) demonstrate substantially higher rates of potentially risky financial practices compared to those aged 55 and older.
For instance, approximately one-third of both younger age groups (31% of 18-34 year-olds and 32% of 35-54 year-olds) report making only minimum payments on their credit cards, while just 16% of older Canadians do the same. Similar patterns appear across various financial behaviors, including skipping bill payments (27% of 18-34 year-olds and 28% of 35-54 year-olds, versus 12% of those 55+), selling belongings to cover expenses (23% and 24% versus 10%), making minimum line of credit payments (17% and 24% versus 11%), borrowing amounts they cannot readily repay (20% and 22% versus 9%), and increasing financial dependence on others (28% and 19% versus 6%).
Geographic and Income Variations in Financial Practices
The survey reveals notable regional differences in financial behaviors across Canada. Ontario residents show some of the highest rates of concerning financial practices, including making only minimum credit card payments (28%), accumulating additional credit card debt (25%), selling personal possessions (21%), making minimum payments on lines of credit (20%), borrowing unaffordable amounts (21%), and increasing reliance on family or friends for financial support (20%).
Alberta also demonstrates elevated rates of certain troubling behaviors, particularly skipping bill payments (27%), selling belongings (25%), making minimum line of credit payments (22%), and taking hardship withdrawals from savings or investment accounts (17%). In contrast, Quebec and Atlantic Canada generally report lower rates of these financial difficulties.
Income predictably influences financial behaviors, with lower-income Canadians – especially those earning under $40,000 annually – more likely to skip bills (27%), sell possessions (24%), increase reliance on family or friends for financial support (22%), make purchases to keep up with peers (10%), and utilize payday loans (12%). However, some concerning financial habits appear relatively consistent across income levels, including making only minimum credit card payments (ranging from 23% to 30% across all income groups), accumulating additional credit card debt (17% to 25%), and making major purchases on credit without immediate repayment (6% to 15%).
Methodology Note
This comprehensive Ipsos survey was conducted between December 6-17, 2024, on behalf of MNP LTD, with a sample of 2,003 Canadian adults. The data was properly weighted to ensure demographic representation according to Census information. The results are considered accurate to within ±2.5 percentage points, 19 times out of 20, for the overall population, with wider margins for demographic subgroups. As with all sample surveys, the results may be subject to various sources of error beyond sampling, including coverage and measurement error.
As Canada’s first Debt Literacy Month continues, these findings underscore the importance of targeted financial education and the ongoing need to address the barriers that prevent many Canadians from seeking the financial assistance they need.
Acknowledgment: This article was written with the help of AI, which also assisted in research, drafting, editing, and formatting this current version.
