A new Ipsos survey conducted on behalf of MNP shows a large number of British Columbians say stigma prevents them from seeking financial help when it comes to debt.
As March marks Debt Literacy Month, MNP's survey shows 74% of respondents believe there is no shame in asking for help with debt; meanwhile, 39% say the stigma surrounding the topic prevents them from seeking assistance, especially when it comes to bankruptcy.
“Although most British Columbians agree there’s no shame in asking for help with debt, the significant increase in those who say the stigma surrounding bankruptcy prevents them from seeking help is troubling,” MNP licensed insolvency trustee Linda Paul said in a news release.
“Debt Literacy Month is about empowering individuals with the knowledge and resources they need to make informed choices about their financial future and break free from the stigma and cycle of debt.”
According to the Office of Superintendent of Bankruptcy statistics, bankruptcies in the province rose by 7.5% last year as inflation continued to hit consumers.
The survey also showed 38% of respondents admitted they need help getting out of debt, but they would be embarrassed to ask for help if it came to bankruptcy, specifically. One in five British Columbians have only paid the minimum payment towards the balance on their credit card. About 20% of respondents have delayed or skipped a bill payment while the same number of folks have sold their personal belongings to make ends meet.
“Debt can feel like an isolating burden, leaving British Columbians feeling like there’s nowhere to turn,” Paul added.
“The key is knowing you’re not alone in facing financial challenges. Anyone can find themselves facing financial hardships — whether it’s the result of an unexpected health issue, divorce, job loss, or other life event. There’s no shame in seeking help.”
Thirty-two per cent of respondents are also afraid that getting help with debt could lead them to lose their homes, while 46% are worried about the impact bankruptcy would have on a credit score.
“Often people put off seeking help because they are embarrassed to talk about their debt, but this can lead to more debt as they struggle to keep up appearances in their social circles,” Paul explained.
The survey polled 2,003 Canadians aged 19 years or older from Dec. 6 to 17.
