When it comes to money, Canadians are more optimistic than realistic.
That’s the finding of a new poll released by Ipsos for BDO Canada.
Almost half of those asked about paying down their debt felt they’ll make progress in 2016 and 40 per cent believe their debt load will not change.
But BDO Canada says increasing costs of living over the next year will likely eat up any extra funds that families otherwise could have used for debt repayment.
“Especially with the economy going the way it is, the value of oil, the low Canadian dollar, the increased cost of living; if there are any changes in a person’s budget it’s not going to allow them to pay down their debt,” says Dustin Joslin with BDO Canada in Kelowna.
Sixty-two per cent of poll respondents admitted if their monthly expenses increased by $300, they’d have trouble making ends meet.
Twenty-nine per cent said they’d feel the pinch if their expenses increased by just $100.
“So with the cost of food right now, that $100 could become a reality very quickly,” says Joslin.
His advice is very much what you might expect. Put away the plastic, live on cash and cut back where you can.
Joslin also says it might be a good idea to consult a financial advisor, as 29 per cent of those surveyed say they intend to do.
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