Canadians are more likely to rely on credit to pay for emergency expenses than any other country surveyed in a new report on household financial stability. The survey, conducted by TNS Canadian Facts, asked more than 14,600 people in 15 countries around the world whether or not they could come up with $2,000 (or equivalent value in local currency) within a month to pay for health care costs or sudden car or home repairs, and if so how they would get the cash.
Canadians led the pack with 28% saying they would use a credit card and another 13% would use a home equity credit line or second mortgage to pay the tab.
"This finding is troubling," Rhonda Grunier, director of financial research at TNS, said in a release. "Credit is still relatively simple to obtain in Canada, making it an easy alternative for many. However, taking on additional debt... could be a big mistake for some people."
Only 8% of Germans would use a credit card, but they tied for first with Canada in willingness to take out a home credit line or mortgage. Luxembourgians are the second most likely to use a credit card at 27%, while only 6% of Dutch would rely on plastic.
Canucks also ranked high in ability to scrape together the necessary funds, with 68% saying they would be able to meet the deadline. The most confident citizens came from Luxembourg, with 89% believing they could get the money.
The least confident countries included Mexico (41%), the United Kingdom (44%) and the United States and Germany (both 46%). A majority of Canadians, at 52%, would dip into their savings, but this does not come close to citizens from the Netherlands or Luxembourg, where 89% and 86% would do the same.
Meanwhile the most financially confident region in Canada was British Columbia, at 76%, while the least confident was the Atlantic provinces, at 57%. However British Columbians are the most likely to use credit cards, with 31% saying so.
Male Canadians are also more financially confident (75%) than females (62%) in this case.
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