|
Study Conducted by Loans Canada Finds Credit-Constrained Canadians Show Confidence in Their Financial Knowledge, But Reality Paints a Different Picture
Wednesday, January 29, 2020
TORONTO, Jan. 23, 2020 /CNW/ - A recent study of 1665 credit-constrained Canadians, conducted by Loans Canada, the country's leading loan comparison website, found inconsistencies between respondents' perceived and actual financial literacy. CTO Cris Ravazzano explains, "The purpose of this survey was to learn more about credit-challenged Canadians and the role their financial literacy plays in the financial decisions they make."
The study found that 67% of respondents consider themselves financially knowledgeable and agreed that they make informed decisions about their finances.
However, when tested on their financial behaviour and decision making, their performance was not in line with their claims. These particular findings stood out.
-- 43% of the 67% are not tracking their expenses or spending habits
-- Two thirds of the 67% are not paying their credit card bills in full
every month
-- 72% of the 67% are not saving on a regular basis
-- 44% of the 67% believe that lenders are allowed to ask for upfront
payments on personal loans
-- 30% of the 67% believe that paying the minimum payments on a credit card
prevents them from being charged interest
The study takes a deeper look at how credit-constrained Canadians are managing their finances and dealing with debt and credit issues.
Further Insights:
-- 46% of respondents are loan stacking for emergencies, unexpected costs
or to make ends meet. Loan stacking refers to taking on multiple loans
from multiple lenders, resulting in multiple monthly payments to
different providers, multiple credit hits, higher risk of default, and
often a violation of loan terms.
-- Nearly 40% of respondents don't realize that payday loans are the most
expensive form of borrowing.
-- 38% of people often skip out on comparing lenders before applying for a
loan.
-- 60% of people rarely ever call a lender before applying for a loan.
-- 33% of respondents believe that cancelling old credit cards can help
them build better credit, which in actuality is incorrect.
-- Almost half of the credit-constrained Canadians carry high-interest debt
in the form of payday loans (45%) and credit cards (55%).
-- People who claim they are financially knowledgeable typically have
higher debt levels than people who disagree with that notion.
Financial literacy and financial well-being are closely linked. Credit education is critical in improving financial health for credit-constrained Canadians. "Our findings show that many Canadian consumers still have a lot to learn when it comes to their financial health, and we feel that financial education plays a very important role in financial decision making. We will continue to make financial literacy a key component of our content strategy moving forward," said Caitlin Wood, Chief Editor at Loans Canada.
To see a detailed summary of this study visit this page,
Study: Financial Literacy vs. Financial Well-Being And Credit-Constrained Canadians
About Loans Canada
Launched in 2012, Loans Canada is the country's leading loan search and comparison platform. Millions of Canadians visit LoansCanada.ca each year to take advantage of their credit education resources or to search for credit products. Loans Canada's proprietary lender-matching technology instantly connects borrowers to lenders and other financial solution providers. For more information, please visit www.loanscanada.ca.
Survey Methodology
From January 7, 2020, to January 16, 2020, a survey was conducted by Loans Canada. A representative sample of 1665 users, from across Canada, were asked questions related to their financial health and literacy. Participants were asked 22 questions and data was collected using Google Forms.
SOURCE Loans Canada
|
|
|
|
|
|
 |
PayDo Launches Unified Payment Infrastructure Suite for Digital Businesses | Jan 22, 2026
|
|
The New Identity Theft Crisis: AI Scams, Child Victims, and Credit Damage Are All Spiking | Jan 22, 2026
|
|
Fintech Startup BON Credit Secures $3.5 Million In Funding | Jan 22, 2026
|
|
AllSci Launches Hypothesis Publishing: A Seamless Way to Share, Connect, and Advance Scientific Ideas | Jan 22, 2026
|
|
Canadian Fintech Tuhk Inc., Founded by Ethoca and NuData Security Veterans, Raises US$6 Million Seed Round Led by FINTOP, with Lloyds Banking Group and Capital One Ventures | Jan 22, 2026
|
|
Darwin CX Caps a Banner Year with AI Launch, Sold-Out Events, and Industry Book Launch | Jan 22, 2026
|
|
Nudge Security Unveils Industry's Most Comprehensive AI Security Governance Platform | Jan 22, 2026
|
|
Young Adult Sports Fiction Debut Featured in LibraryBub Selection for January | Jan 22, 2026
|
|
IoTeX Publishes MiCA-Compliant Whitepaper for IOTX, Enabling EU-Wide Alignment Under the New Regulatory Framework | Jan 22, 2026
|
|
Gametime Launches "12 Days of Gametime" Holiday Giveaway in Partnership with Barstool Sports | Jan 22, 2026
|
|
|
|
