More than half of British Columbians says they made a risky financial decision in 2019.

That data comes from a recent study conducted by Ipsos on behalf of MNP Ltd. Across Canada there are 53% of people that are making risky financial decisions. We here in BC are slightly better at 51% of the population.

Speaking on The Jeff Andreas Show, Licensed Insolvency Trustee Dean Prentice says there are a few more common practices to be aware of. “The number one reason is not paying off your credit card or lines of credit every month. And the second most serious reason is that people get lured in by special deals or special offers. It looks good when they see the price or the reduction, but most people once they make that purchase they’re not paying it off at the end of the month.”

Prentice says 8% of people in the province get sucked in by those types of deals. “In fact, for people who don’t pay their credit off at the end of every month, people figure it takes about six years and eight months to actually get their debts paid off. So when you look at the interest you pay on that purchase, it’s actually not a deal at all.”

Prentice says when you are making minimum payments, it is a sign that you are in trouble and there are some steps you can take to find out. “Call it the three month rule. If you set some goals to say ‘in three months I will have paid my debt down by this much.’ You set a target to figure out how you need to adjust your budget and what you need to change in your spending so that you can achieve that goal. And then track your debt level and your spending for three months.” He says if you can’t reach that goal, it might be a sign that you need some help to pay off your debt.

The survey shows that one in three British Columbians are living debt free, but 20% of Baby Boomers and Gen X’ers don’t think they’ll ever be completely in the black.

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