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Date

November 6, 2023

Why is it so hard to talk about debt?

We explore why Canadians find financial issues so hard to talk about and provide advice on how to face your debt reality.

Why is it so hard to talk about debt?

Debt is one of those topics that people just don’t want to talk about. Why is that?

Is it too personal? Is it too embarrassing? Is it too depressing? It can be all of those things. But talking about debt is best way to find a solution. And that really is the goal here.

So to help people understand and move past the taboos that surround debt, we asked Canadians why they find financial issues like debt so hard to talk about and what is keeping them from finding solutions.

Here is what we learned.

How difficult is it to talk about debt?

Personal financial issues like debt are the most challenging topic of conversation.

Canadians rated the following issues, from most difficult to less difficult to talk about with friends and family.

1. 56% find financial issues (debt, arrears, bankruptcy, etc.) difficult to talk about.

21% - Very difficult
35% - Somewhat difficult
27% - Not very difficult
16% - Not at all difficult

2. 51% find relationship issues (break-up, divorce, etc.) difficult to talk about.

18% - Very difficult
33% - Somewhat difficult
30% - Not very difficult
19% - Not at all difficult

3. 43% find medical issues (physical, mental health, etc.) difficult to talk about.

12% - Very difficult
31% - Somewhat difficult
36% - Not very difficult
21% - Not at all difficult

4. 30% find employment issues (job satisfaction, unemployment, etc.) difficult to talk about.

9% - Very difficult
20% - Somewhat difficult
37% - Not very difficult
33% - Not at all difficult

5. 25% find housing issues (damages, repairs, etc.) difficult to talk about.

8% - Very difficult
17% - Somewhat difficult
40% - Not very difficult
35% - Not at all difficult

Frustrated concerned young couple calculating overspend budget

Who finds financial issues to be the most challenging topic to discuss?

Across all ages, all geographies, financial issues are the most difficult to discuss, as compared to relationship, medical, employment or housing issues.

People in Manitoba and Saskatchewan find it the hardest: 73% find financial issues to the most challenging topic of conversation.

Only half of Quebecers (50%) find financial issues to be the difficult to discuss, but it is still the most difficult topic of conversation.

How common is debt stress? And how common is it not to discuss it?

One thing is certain, debt is hard to talk about. But why is that such a problem? When you understand how many people have debt and are concerned about it, you begin to wonder why people aren’t sharing their pain and or their knowledge around troubleshooting.

How concerned are Canadians about their debt?

54% are concerned about their current debt situation.

Ages 18-34 = 64%
Ages 35-54 = 60%
Ages 55+ = 40%

46% are not concerned about their current debt situation.

Ages 18-34 = 36%
Ages 35-54 = 40%
Ages 55+ = 60%

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How likely are people to talk about it?

Among those concerned about their debt, the majority (58%) would either prefer not to discuss it with anyone or find themselves unsure about whom to confide in and what to do.

36% — I don’t want to talk to anyone about my debt
22% — I don’t know who to talk to or what to do about my debt
27% — I have talked to someone in the past
17% — I am planning to talk to someone

Nancy Snedden portrait

"Last Spring, our Affordability Index revealed how low financial literacy scores are around debt management, and this new poll can help explain why. Most people find it very difficult to talk about their debt. They don’t discuss their challenges, let alone the strategies for overcoming debt."

Nancy Snedden, Licensed Insolvency Trustee & President of BDO Debt Solutions

Why aren’t people discussing their debt?

For people who haven’t discussed their debt and don’t plan to, here are the main barriers to having an open conversation:

38% — Fear of judgement/too ashamed or embarrassed
35% — Privacy concerns
31% — Fear of people thinking I am asking them for money
29% — Fear of burdening others/potential damage to relationship
17% — Lack of financial literacy and understanding of debt
16% — Lack of supportive network or safe space
15% — Negative past experiences
11% — Cultural and family norms

We asked “Why do you feel shame or embarrassment about your debt?”

We heard lots of different things. Some answers are hard to read. We are sharing them to help people understand that they aren’t alone.

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People always judge spending and purchases when money is being discussed.