New Study Shows Many Canadians Demonstrate Troubling Financial Behaviours That Could Lead to Bankruptcy

Study by InCharge Debt Solutions Also Shows Insufficient Awareness of Alternatives to Bankruptcy

Mississauga, ON (PRWEB) November 13, 2006 -- A significant portion of Canadians have developed some troubling financial habits that could eventually lead to personal bankruptcy, according to a new study by InCharge Debt Solutions, a registered charitable non-profit organization specializing in personal finance education and credit counselling. A full 14 percent of Canadians reported that they always live paycheque to paycheque, and that they always use credit cards for basic living expenses such as groceries and gas.

The study of 1,002 Canadian adults, performed in August 2006, also found that nearly half (47 percent) of Canadians know little or nothing regarding credit counselling (3 or less on a 1 to 10 scale); and even more (54 percent) have little or no understanding of consumer proposals (a repayment method requiring creditor approval and a trustee intermediary).

"Let's face it - many of us have needed at some point in our lives to live paycheque to paycheque, or to use credit cards for a cup of coffee or a few litres of gas," explains InCharge Executive Director Greg Gogan. "When it starts happening every month, though, and balances build up, that's a red flag that shouldn't be ignored. It might be time to seek out help."

According to another recent survey by Statistics Canada, household incomes throughout Canada have remained steady since 2000, while household expenditures have been on the rise, putting a squeeze on net cash available for savings. Canada's debt to income ratio has also steadily increased for much of the past 15 years, and 2005 marked the first time that spending exceeded income in Canada.

"Fortunately, bankruptcy is not the only alternative for the severely debt distressed," added Gogan. "There are some very good credit counselling agencies in Canada that provide personalized budgeting assistance, education and in some cases, a debt management plan to help the debt distressed get out of debt, and stay out. Credit counsellors will work with creditors to develop a payment plan, often with reduced, or eliminated, interest rates and fees. With the right amount of discipline, consumers can work their way out of debt - even severe debt."

"InCharge Canada 2006 Personal Financial Attitudes Survey" was performed by Ipsos Reid on behalf of InCharge to assess the financial wellness of Canadian consumers and identify areas in need of personal finance education and credit counselling. The survey of 1,002 Canadian consumers aged 18 and older was performed in August 2006. Study results can be requested by emailing ldaves@inchargecanada.ca.

For more information on InCharge Debt Solutions, as well as resources on debt relief and money management, please visit www.inchargecanada.ca.

InCharge Debt Solutions is a registered charitable non-profit organization offering financial education programs, confidential and professional credit counselling, and debt management to individuals. InCharge is committed to providing services that help consumers pay off their debts and achieve financial independence. A member of Credit Counselling Canada, InCharge offers services in most regions of the country. For more information, please visit www.inchargecanada.ca.

###