Canadians are more willing to use their savings to pay down debt, such as credit card and personal loans, than are Americans and Western Europeans, according to a survey commissioned by ING Group.
The study, conducted by Dutch research firm TNS NIPO, showed a third of Canadians (33%) are prepared to dip into their savings over the next 12 months to pay off some debt, versus 29% of Americans and 18% of Western Europeans (Germany, France, Italy, Spain, Netherlands, Luxembourg and Austria).
The survey polled more than 18,000 people in 19 countries worldwide to assess and compare overall attitudes towards saving.
When looking at comfort levels around accumulated savings, one-third of Canadians feel uncomfortable with the amount of money they have saved. Survey respondents in Spain (48%) and the U.S. (36%) are most uncomfortable with their level of accumulated savings.
Though it appears Canada has weathered the current global financial crisis better than other nations, 36% of Canadian respondents indicated that their financial position has weakened due to costs rising faster than incomes. In the U.S., 39% of those polled blamed inflation for their weakened finances. That number jumps to 48% in the UK and 56% in France.
In all countries, a majority of respondents said they are saving less due to the current economic situation. In both Canada and the U.S., almost half (47 and 48% respectively) indicated they are now saving less. Among the countries saving the least is Romania, where 74% said they’re not saving as much as before, followed by Italy and Spain, where close to two-thirds (64%) are saving less because of the economic conditions.
“The fact that Canadians are paying more attention to their spending is good news,” says Peter Aceto, president and CEO of Toronto-based ING DIRECT. “It’s the first step towards reducing debt, which really, is an important aspect of building savings overall. As Canadians manage to scale down interest payments on their debts, more of their money can be put where it has the potential to grow.”
The survey also revealed that 39% of Canadians polled are trusting of banks and other financial institutions, which makes them among the most trusting compared to other countries. In the U.S. only 17% said they trust banks to help them make a major financial decision.