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Manulife Bank survey reveals that despite claiming to understand debt management, many Canadians aren't meeting debt
reduction goals and feel unsupported by their banks
- Knowledge doesn't cut it: More than half of Canadians claim good knowledge of debt management (54%), however,
household debt has reached record highs1 and only a minority (41%) are comfortable with their debt
- Need for allies: Only one in six Canadians believe their bank helps them pay down debt (16%) and puts their needs
first (17%); however, those with advisors are 60% more likely to be satisfied with overall financial health
- Missing the mark: Many Canadians say being debt-free is a priority; however, less than a third of debtholders (31%)
achieved debt reduction goals in the past year
- Debt impacts health: Most Canadians (53%) believe financial challenges take a toll on mental or emotional health,
and a third (34%) on physical health
- Silent treatment: More than 30 per cent of Canadians are embarrassed or unsure of whom to talk to, and 55 per cent
seldom talk about own debt with friends or family
TORONTO, Nov. 23, 2017 /CNW/ - Canadians will tap, swipe and
click their way through Black Friday, Cyber Monday and into the holiday shopping season under a cloud of debt, despite a majority
claiming they know how to manage debt (54%) and saying they are committed to becoming debt free (64%).
While being debt-free is a priority (64%) according to a survey released by Manulife Bank of Canada, Canadian household debt-to-income is at record levels2. While almost half of debtholders
surveyed (44%) said they had reduced their debt burden over the past year, (31%) actually met their debt reduction goals.
"When it comes to debt, knowledge alone does not equal power," said Rick Lunny, President and
CEO of Manulife Bank. "There is a clear gap between what Canadians say they know about managing debt, their good intentions, and
their ability to do something about it."
Nearly one-quarter (24%) of Canadians also said they are embarrassed to talk about how much debt they have. Nearly 40 per cent
could not say they knew whom to talk to about debt management, while more than half said they seldom have the conversation with
friends or family (55%).
Lack of confidence and looking for help
Canadians lack confidence in their bank's willingness and ability to help with debt. While more than seven in ten (71%) would
like to be more confident about financial decisions and most look for guidance from their banks to help pay down debt, only a
small number actually believe their bank helps them reduce debt (16%) and makes their interests a priority (17%). However, 46 per
cent of respondents said they simply do not know how their bank could help.
This despite many Canadians recognizing the link between health and wealth. Nearly nine in ten (88%) said financial issues
impact other areas of individuals' lives and that financial wellness positively impacts overall health and productivity at work.
In addition, three-quarters believe financial literacy and support is key to avoiding financial issues, and that having access to
financial counselling is beneficial.
However, more than half (53%) said financial challenges impact mental or emotional health, while more than a third (34%) also
considered impacts to physical health.
"There is a very strong connection between health and wealth. People should feel confident that they have allies when it comes
to managing and reducing debt. Beginning to talk about debt, especially with a financial advisor, is a very important first step.
Canadians who do not have a financial advisor are encouraged to seek out somebody they can trust," says Lunny.
Approximately half of those surveyed expressed satisfaction with their overall financial health (47%); most satisfied were
those who worked with financial advisors (59%) in contrast to those without (36%).
Differences between homeowners and renters
Among more than half (54%) of Canadians claiming good knowledge of debt management, homeowners (60%) are significantly more
likely than renters (42%) to say they do. Homeowners also indicated different financial priorities than renters, focusing more on
savings and investments rather than preparing for unexpected expenses or interruptions of income.
For homeowners carrying mortgages, the key factor in choosing a mortgage was the interest rate. More than half (56%) of
respondents put this on the top of their priority list, while only 11 per cent said the ability to pay down their mortgage as
fast as possible was most important.
Mortgage holders also reported not having a very good knowledge of critical information, such as the consequences of missing a
payment. One in ten were not certain on who their mortgage provider was.
The average level of mortgage debt has remained relatively steady at approximately $200,000
since Manulife Bank last surveyed Canadians in February 2017.
About the Manulife Bank of Canada Debt Survey
The Manulife Bank of Canada poll surveyed 2,409 Canadian homeowners and renters in all
provinces between ages 20 and 69 with household income of more than $40,000. The survey was
conducted online by The Nielsen Company between October 11-23, 2017. National results were weighted
by province and age.
About Manulife Bank
Established in 1993, Manulife Bank was the first federally regulated bank opened by an insurance company in Canada. It is a Schedule l federally chartered bank and a wholly-owned subsidiary of Manulife. As
Canada's first advisor-based bank, it has successfully grown to more than $22 billion in assets and serves clients across Canada.
About Manulife
Manulife Financial Corporation is a leading international financial services group that helps people achieve their dreams and
aspirations by putting customers' needs first and providing the right advice and solutions. We operate primarily as John Hancock in the United States and Manulife elsewhere. We provide
financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. At the
end of 2016, we had approximately 35,000 employees, 70,000 agents, and thousands of distribution partners, serving more than 22
million customers. As of September 30, 2017, we had over $1 trillion
(US$806 billion) in assets under management and administration, and in the previous 12 months we
made $27.1 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where
we have served customers for more than 100 years. With our global headquarters in Toronto,
Canada, we trade as 'MFC' on the Toronto, New York, and
the Philippine stock exchanges and under '945' in Hong Kong.
SOURCE Manulife Financial Corporation
View original content: http://www.newswire.ca/en/releases/archive/November2017/23/c6991.html