Costs of Living, Credit Cards & COVID-19 Latest BC – GlobeNewswire

Credit card debt cited five times more than other types of problem debt; using credit for essential costs of living the main cause of debt reported by 18% of insolvent consumers, and more than 3 in 4 respondents say being in debt affected their mental health.

VANCOUVER, British Columbia, Jan. 17, 2022 (GLOBE NEWSWIRE) -- BC Licensed Insolvency Trustees Sands & Associates today released complete findings from the 2021 BC Consumer Debt Study. This unique annual study polled over 1,700 consumers from across the province who declared personal bankruptcy or legally consolidated debt with a Consumer Proposal and provides an opportunity to better understand some of the many aspects of financial challenges faced by British Columbians.

According to Sands & Associates President and Licensed Insolvency Trustee Blair Mantin, Consumers may often be lulled into thinking their debt isnt 'too much', not realizing how easily problem debt gets out of control, or how common life challenges can leave people facing unimaginable financial difficulties and overwhelming stress.

As well as highlighting the causes of problem debt and its impact on individuals, the 2021 BC Consumer Debt Study identified notable trends in consumer debt habits:

Click here to read the full 2021 BC Consumer Debt Study report in PDF format.

More than 56% of all consumers polled said credit card debt was the main type of debt they had when they began a formal debt solution, far surpassing other types of debt reported tax debt (11%) and lines of credit (10%).

Participants reported that being in debt affected their wellbeing in many ways, including:

When asked how they knew their debts were becoming a problem:

Only 5% of consumers said they sought professional debt help right away, with majority being stopped by rationale such as:

Click here to read the full 2021 BC Consumer Debt Study report in PDF format.

About Sands & Associates and BC Consumer Debt Studies

Founded in 1990, Sands & Associates has grown to become an industry leader, now BCs largest firm of Licensed Insolvency Trustees focused exclusively on debt management aid for consumers and small businesses. A multi-year Consumer Choice Award winner, Sands & Associates aims to integrate consumer empowerment, personal financial literacy and Canadian legislation, providing an overall supportive and effective approach to debt help solutions.

On Sands & Associates annual BC Consumer Debt Study, Sands & Associates President and Licensed Insolvency Trustee Blair Mantin notes, Through these annual studies were able to gain and share invaluable insights into the challenges being faced by people in virtually every community. As a Licensed Insolvency Trustee serving residents across BC Im aware of the difficult situations people are working through, the heavy toll of their debt-stress and being able to share in this knowledge helps others to empathize, increasing awareness that is so needed in order to step up and help people get the resources and solutions they need to regain their lives and move forward without the overwhelming burden of a debt problem.

Blair Mantin, Licensed Insolvency Trustee778-735-0498bmantin@sands-trustee.com

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Costs of Living, Credit Cards & COVID-19 Latest BC - GlobeNewswire