Financial advisors and financial planners report seeing increasing struggles
Coping with higher prices for everyday essentials can be hard enough, but when debts are weighing you down, it can become a critical situation.
A poll of Canadian financial advisors and financial planners reveals a rising problem with consumers unable to meet their monthly financial obligations, potentially destroying credit worthiness and long-term financial security.
The Advocis survey found that 40% of respondents said they have clients who have been late with credit card or mortgage payments and almost half have seen some take out a car loan and sell personal items to cope with the payments.
“The increased burden of living expenses and heightened interest rates have resulted in a financial challenge, as the weight of debt has become even more significant for Canadian households. Additionally, the majority of Canadians have not experienced a proportional increase in their incomes to match the escalating costs of everyday purchases,” says Julie Martini, COO of Advocis.
Financial literacy
The survey was conducted for Financial Literacy Month which runs throughout November and shows desire among Canadians to improve what they know about managing their money, something that appears to be lacking for millions of adults.
Two thirds of advisors and planners said that clients are keen to improve their overall financial literacy and resilience, and 56% said that clients have been asking them to help adjust their financial plan to manage the impact of inflation.
"Saying it's a tough climate would be putting it gently. We are tremendously excited to continue our support for Financial Literacy Month, and we hope that our innovative approach through an award winning resource such as Financial Advice for All will help us engage and increase awareness about the importance of financial education for all Canadians. Financial professionals have a responsibility to consistently provide reliable guidance and resolutions, aiding clients in adjusting to the evolving environment and safeguarding their clients during these turbulent periods,” Martini added.
