Financial institutions should be committed to helping their clients keep their debt levels under control, according to many residents of Vancouver and Victoria.
A Vancity poll released January 8 shows that 70% of respondents in those cities believe this to be the case. However, only 38% believe their banks care about helping clients manage their credit card debt and take care of their overall financial situations.
For example, 44% of those surveyed said banks encourage credit card debt by increasing credit card limits.
“People want financial institutions to go beyond increasing credit limits and encouraging RRSP contributions,” said Vancity investment Sophie Salcito.
“They want a full-service approach that takes their debt, savings and investment situation into account. This may mean focusing on debt reduction rather than investments.”
Many of those surveyed could maybe use some financial guidance, the bank said. The poll found that many people increased their credit card debt over the holiday season but do not plan to make any lump-sum RRSP contributions.
Specifically, 65% used credit cards in December 2014, and 75% say they will not be making lump-sum RRSP contributions by the March deadline.
Only 7% said they anticipate carrying a balance on credit cards from holiday spending, but Vancity countered this by pointing to Statistics Canada figures that show 40% of families in Canada are carrying credit card debt into the new year.
