Fig’s survey reveals important data on the financial struggles Canadians face right now, highlighting the need for innovative financial solutions and support.
“You’re never going to get out of debt that way, so it’s very concerning to see how many Canadians are trapped in this vicious cycle.”
An overwhelming 82% of Canadians are burdened with existing debt and nearly one in five (18%) remain uncertain they can fully pay it off. This financial strain is further compounded by the struggle to cover essential items, which 35% of Canadians have identified as their biggest financial challenge over the past year. Many have resorted to cutting back on non-essentials, delaying purchases, or dipping into savings to manage these rising costs.
“If you’re only making the minimum payment on your credit cards, you’re only covering the interest and not paying down the principal amount of what you actually owe,” said Francois Cote, Founder & CEO, Fig Financial. “You’re never going to get out of debt that way, so it’s very concerning to see how many Canadians are trapped in this vicious cycle.”
Even the need to go to a traditional bank can get in the way of tackling these challenges, as one quarter of Canadians (25%) have postponed a major financial decision due to a lack of time to visit a bank. This highlights a significant gap in the Canadian market for online financial services, which offer increased accessibility and convenience. As a result, these digital solutions are becoming more popular, providing Canadians with the tools they need to manage their finances more effectively.
In the past five years, 73% of Canadians have adopted more technology and digital services to manage their finances, with a striking 75% feeling increasingly independent in doing so. This trend reflects a significant shift towards digital solutions, highlighting Canadians’ growing preference for financial autonomy and flexibility. As they become more tech-savvy, Canadians are embracing online financial products, drawn by advantages such as lower fees (47%), greater convenience (34%), and competitive interest rates (32%).
With one third of Canadians (33%) reporting they do not know their credit score and nearly one in five (19%) saying they are not confident in managing their finances independently, it’s clear there is a need for more informative financial services to empower Canadians.
In response, Fig offers a robust online personal loans platform that not only meets these needs but also enhances financial independence. Fig’s Knowledge Base is filled with educational content and practical advice for many common questions Canadians have, such as, what is debt consolidation? What’s the difference between personal loans, credit cards & lines of credit? And how do I improve my credit score?
There are simple financial strategies many Canadians can benefit from like leveraging personal loans to transfer expensive debt from credit cards, potentially saving thousands of dollars in interest. Fig makes this possible through rates starting as low as 8.99%, which is significantly lower than the average credit card APR of 21.99%.
