Some people may have a disconnect between understanding their debts and managing their finances to pay off the loans, a survey by Chartered Professional Accountants of Canada shows. Canadian $100 bills are counted in Toronto, Feb. 2, 2016. THE CANADIAN PRESS/Graeme Roy
TORONTO – Some Canadians may be overestimating their ability to manage their finances and pay off their debt, a survey by Chartered Professional Accountants of Canada shows.
The report says 47 per cent of people graded their personal finance skills as an A or B but a quarter of them also admitted to buying things they can’t afford.
The report highlights other disconnects in personal finance management, including 33 per cent of respondents with consumer debt reporting they don’t understand the impact of fluctuating interest rates on their loans.
The survey, which was conducted online by Ipsos between June 16-23, shows 57 per cent of respondents with non-mortgage debt have carried a credit card balance in the last two years.
Doretta Thompson, CPA Canada’s financial literacy leader, says while inflation can be difficult to predict, controlling your actions can help manage the outcome of your personal finances.
The report also finds one in four Canadians say they would not be able to come up with $500 in cash within a day without borrowing or selling a possession, which is a sign of struggle with cash flow.
This report by The Canadian Press was first published Aug. 29, 2023.
