One in three people in Quebec lacks the money to meet the basic needs, a new statistic revealed, that would also reflect the indebtedness of Quebecers. 71% of Quebecers are in debt, according to the recent survey conducted on behalf of BDO Canada, a professional financial services firm.
Additionally, almost one in four people said they do not know what strategy to opt for to get out of debt. The level of indebtedness of these people would be too high for them to feel able to meet the challenge. Even worse, almost half of those surveyed (45%) say their incomes are barely enough to satisfy the cost of living.
“These results are very worrisome and even alarming,” said Ronald Gagnon, the senior vice president at BDO Canada.
According to this survey, the average level of consumer debt for Quebecers is $20,134, excluding mortgage loans.
“When you know that interest rate hikes are likely to occur shortly, you can imagine the catastrophic consequences this could have for indebted households,” said Ronald Gagnon.
Also, 41% of survey respondents say they are not prepared to deal with unexpected costs.
The Quebecers are affected by indebtedness and refuse to save for retirement
The study also notes the Quebecers’ lack of preparation for retirement. Under these conditions, saving for retirement is far from being a priority for these people. Indeed, 34% of the respondents say they have “very little money set aside for retirement,” while 29% say they have no retirement savings. Finally, 64% of respondents consider that the financial preparation for retirement is a significant challenge for them.
Another consequence of this widespread indebtedness among Quebecers would be the increasingly late departure of young adults from the family home, a phenomenon that can also be observed in many less wealthy countries.
For example, 18% of respondents reported that they still have a young person over 18 years of age living with them. According to the participants in this survey, it would be too expensive for a young adult to leave the family home and live on his/her own. Also, many of the Quebecers youngsters prefer residing with his/her parents until he/she finds a job that would allow for moving on.