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.

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Why is it so hard to talk about debt?

Young women having coffee

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.

Affordability Index Q4 2023 - Graph #1


View accessible results for "How difficult is it to talk about debt?"
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?

Affordability Index Q4 2023 - Graph #2

View accessible results for "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.

Affordability Index Q4 2023 - Graph #3

View accessible results for "How likely are people to talk about it?"
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: 

Affordability Index 2023 - Graph #4

View accessible results for "Why aren't people discussing their debt?"
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.

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

Affordability Index respondent

Canada

Because people might think I am incapable.

Affordability Index respondent

Canada

Being on disability it makes it look like I’m having a ‘free ride’ as people say. But the depth of what’s not covered for medical items (prescription or OTC items) is crushing. Only way to get somewhat ahead is to take on debt.

Affordability Index respondent

Canada

Because it’s borne out of spousal abuse and then I’d have to talk about that.

Affordability Index respondent

Canada

Ashamed that I don’t have my life together.

Affordability Index respondent

Canada

It feels like it’s my fault and I should have done something differently, even though I don’t think I did anything wrong.

Affordability Index respondent

Canada

Because it’s no one’s business but mine. Because it’s wrong to ask for help. Because if I’m in debt it means I’m a failure.

Affordability Index respondent

Canada

People might think you’re ignorant or simply don’t care about your money or debts.

Affordability Index respondent

Canada

Because I am a man, a family provider, and coming up short isn’t an option.

Affordability Index respondent

Canada

Don’t want people being rude to me.

Affordability Index respondent

Canada

I don’t want my family to see me failing at life.

Affordability Index respondent

Canada

I am supposed to be smart and my situation makes me seem stupid to have gotten into this situation.

Affordability Index respondent

Canada

At my age, debt shouldn’t be an issue.

Affordability Index respondent

Canada

I’m a working professional I shouldn’t always be living cheque to cheque and scraping by.

Affordability Index respondent

Canada


"We know that people’s perception of debt leans heavily toward shame and embarrassment. We try to help debtors see things differently. A shift happens when they can focus on the solutions and move past the feelings of guilt. We encourage debtors to focus on education and resources and, wherever possible, share their learnings with other people. Because the truth is that they’re not alone."


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

Couple working on a budget

Are you ready to start living debt-free?

We'll meet with you for a free, no-obligation consultation to assess your finances and explain all your options so that you can make an informed decision on the best path towards debt freedom.
1-855-BDO-DEBT

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Canadians helped across Canada

We'll find solutions to your debt problems

Talking about money can be uncomfortable & intimidating, which is often enough to prevent you from getting the help you need.

At BDO, we believe that judgement-free, compassionate support goes a long way to making that first step just a little bit easier. We know that debt problems can happen to anyone and there's no shame in seeking help.

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About the BDO Affordability Index

In partnership with BDO Canada, Leger conducted an online survey from September 15 to September  17, 2023, among a representative randomized sample of 1,565 Canadians age 18+. Significance testing is done at a 95% confidence level.

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.

Share
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