Media
Canadians Score
Low on Financial Basics: New Study
Credit Canada announces first ever ‘Credit Education
Week Canada’ to build financial awareness and increase Canadians’
financial IQ
Toronto, ON (September 13, 2007) – Canadians
report feeling more in debt than ever with 90% saying they have
more debt today than five years ago, according to a recent study
sponsored by Credit Canada. Despite this feeling of indebtedness,
over half of Canadians (53%) still do not have a personal/household
budget. Furthermore, they remain unaware of critical information
and tools that are available to help them manage that debt. For
instance, the survey results showed that a large majority (80%)
do not know their credit rating (or credit score), leaving them
in the dark about a key factor in the cost of their debt.
“A credit score can be one of the most significant numbers
in consumers’ lives. Our survey findings substantiate the
need for greater education on key personal finance issues including
credit, savings, and retirement planning,” says Laurie Campbell
from Credit Canada. “It is critical for Canadians to have
the knowledge and capacity to effectively manage their finances
today in order to plan for and build a stronger future.”
The survey findings also highlight other significant gaps in
public awareness and behaviour when it comes to personal finance.
For example, one-quarter (26 percent) of Canadians do not consider
the consequences of a rising interest rate when borrowing money.
Taken together these gaps mean many Canadians lack the knowledge
to effectively manage their finances, a situation that could be
taking money out of their pockets. To sharpen the Canadian financial
IQ, Credit Canada and Capital One Financial Corporation are teaming
up to co-sponsor the first ever Credit Education Week Canada that
will take place November 13-16 of this year.
“Understanding the basics of credit and personal finance
can have a tremendous impact on your financial well-being, both
today and in the future,” said Bill Cilluffo, president
of Capital One Canada. “Capital One is committed to building
awareness on all issues related to personal finance. We are proud
to partner with Credit Canada, and we hope Canadians will take
advantage of Credit Education Week events and resources to build
their credit wisdom.”
About Credit Education Week
Credit Education Week is a national event supported by leaders
in financial services, consumer advocates, community organizations
and government. The goal of this initiative is to empower the
public to make wise financial choices by placing tools and resources
at their fingertips through free events that will address key
topics in all stages of financial life.
The calendar of events for Credit Education Week Canada includes:
- National essay contest aimed at grade-twelve
students who will answer how they plan on financing their post-secondary
education. Winners will receive scholarship awards.
- University Campus fairs featuring presentations
by James Cunningham of “Funny Money”
- University of Toronto, Hart House, Toronto - November
13, 10:00am to 4:00pm
- York University, Underground, Toronto - November 14,
10:00am to 4:00pm
- Credit Education Trade Show featuring seminars
led by noted authors, experts and government agencies on topics
including: youth and money, identity theft/fraud, retirement
planning, savings and investment.
- Four Seasons Hotel, Toronto - November 15, 10:00am to
4:00pm
- Gala Dinner featuring Stephen Lewis, Four
Seasons Hotel, Toronto - November 15, 5:30pm to 8:30pm
For more information and updates please visit www.crediteducationweekcanada.com.
Survey Methodology
These are some of the findings from a Torque Market Intelligence
poll conducted on behalf of Credit Canada. The online survey was
launched on May 24, 2007, with the final results submitted on
June 26, 2007. It is based on a randomly selected sample of 4,487
adult Canadians. The margin of error is ±1.46 percentage
points (19 out of 20).
About Credit Canada
Credit Canada is a non-profit charitable service that has assisted
thousands of people with credit counselling and debt management
programs since 1966. Credit Canada is a member of the Ontario
Association of Credit Counselling Services and a Charter Member
of Credit Counselling Canada.
About Capital One
Located in Toronto, Ontario, Capital One has offered Canadian
consumers a range of competitive MasterCard® credit cards
since 1996, when the company first introduced the Platinum MasterCard®
in Canada. Capital One Canada is a division of Capital One Bank,
a subsidiary of Capital One Financial Corporation of McLean, Virginia
(NYSE: COF)
Study Reveals Canadians
Are Living Outside Their Financial Means
Credit Canada and Capital One Canada present
Credit Education Week to Improve Canadians’ Financial Fitness
Toronto, ON (October 25th, 2007) - Canada’s
first ever Credit Education Week, presented by Credit Canada and
Capital One Canada, will take place from November 13th to November
16th across the country. The goal of this event is to empower
all Canadians, regardless of age and income level, to make better
financial decisions. From a recent study conducted by Credit Canada,
it is about time.
The study shows that the extent of Canadian debt is troubling.
More than half of all Canadians (55%) admit to having more expenses
than income at least one month a year. That means that the majority
of Canadians are at risk of being in a long-term financial bind
as they try to play catch-up in the months that follow. In fact,
14 percent say that their expenses are greater than their income
for six months, and six percent say that this is the case for
12 months of the year.
Despite this reality, only seven percent of Canadians think it
makes more sense to carry more debt than they did five years ago.
“There is no doubt that many Canadians need more information
and education about financial management and using credit wisely,”
says Laurie Campbell, Executive Director of Credit Canada. “It
is becoming more evident that many Canadians simply do not know,
or don’t follow, the golden rule of financial management
– do not spend more than you earn.”
About Credit Education Week
Credit Education Week is a national event presented by Credit
Canada and Capital One Canada. It is also supported by leaders
in financial services, consumer advocacy, community organizations
and governments across the country. The goal of this initiative
is to help Canadians improve their financial management skills
by providing free financial tools, resources, and advice throughout
the week.
“Capital One is proud to be involved in Credit Education
Week as part of our long-term commitment to financial and credit
education in Canada,” states Bill Cillufo, president of
Capital One Canada. “This event is a great start as it not
only builds awareness about the importance of managing your money
wisely, but also provides easy access to information and practical
tips.”
- Credit Education Week will be held from November 13th to November
16th. The calendar of activities leading up to and during the
week includes:
A National Essay Contest aimed at grade-twelve students who
will answer how they plan on financing their post-secondary
education. The contest runs from September 14 to October 26,
2007. Winners will receive scholarship awards.
- University Campus Fairs featuring presentations by James
Cunningham of “Funny Money”
- University of Toronto, Hart House, Toronto - November
13, 10:00am to 4:30pm
- York University Underground, Toronto - November 14, 10:00am
to 4:30pm
- Credit Education Trade Show featuring seminars led by noted
authors, experts and government agencies on topics including:
youth and money, identity theft/fraud, retirement planning,
savings and investment.
- Four Seasons Hotel, Toronto - November 15, 10:00am to
4:30pm
- Gala Dinner featuring Stephen Lewis, Four Seasons Hotel,
Toronto - November 15, 5:30pm to 8:30pm
There is a wealth of information as well as free tools and resources
that can be accessed at www.crediteducationweekcanada.com.
All the results of the financial survey conducted by Credit Canada
will be released on the first day of Credit Education Week, November
13, 2007.
Money Management Tips
To help you stay fiscally fit, Capital One and Credit Canada
have the following advice.
- Develop a budget and stick to it –
A budget is an important first step to successful financial
management. It will help you to organize your finances and set
parameters on your spending.
- Keep track of your daily purchases –
Knowing what you spend everyday will help you stay within your
budget limits.
- Know your credit score and review it at least once
a year. This score is used by lenders, landlords and
potential employers to assess your financial integrity. Obtain
a copy of your credit score for a minimal fee by contacting
TransUnion (www.transunion.ca)
or Equifax (www.econsumer.equifax.ca).
- Pay more than the minimum due – Try
to pay more than the minimum balance due on your credit card
bill every month.
- Make your payments on time – Pay close
attention to the due date for your payments since a history
of late payments will affect your credit score.
- Shop around to find the credit card that best meets
your financial needs – Comparison shopping can
save you money and may even provide you with valuable rewards.
The Financial Consumer Agency of Canada (FCAC) offers a useful
credit card comparison table within the 'Credit Cards and You'
section of their Web site as a resource for consumers (http://www.fcac-cfc.gc.ca/eng/consumers/CreditCards/
default.asp).
DO NOT …
- Get into the habit of making only the ‘minimum payment’
due on your credit balance every month
- Borrow money to pay off another debt or loan
- Obtain a new credit card to pay off an old one
- Dip into your savings to cover everyday expenses
(Source: Capital One Canada and Credit Canada. For more tips
and advice, visit www.crediteducationweekcanada.com)
Survey Methodology
These are some of the findings from a Torque Market Intelligence
poll conducted on behalf of Credit Canada. The online survey was
launched on May 24, 2007, with the final results submitted on
June 26, 2007. It is based on a randomly selected sample of 4,487
adult Canadians. The margin of error is ±1.46 percentage
points (19 out of 20).
About Credit Canada
Credit Canada is a non-profit charitable service that has assisted
thousands of people with credit counselling and debt management
programs since 1966. Credit Canada is a member of the Ontario
Association of Credit Counselling Services and a Charter Member
of Credit Counselling Canada.
About Capital One
Located in Toronto, Ontario, Capital One has offered Canadian
consumers a range of competitive MasterCard® credit cards
since 1996, when the company first introduced the Platinum MasterCard®
in Canada. Capital One Canada is a division of Capital One Bank,
a subsidiary of Capital One Financial Corporation of McLean, Virginia
(NYSE: COF)
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