Are Canadians still laser-focused on paying down debt? Or are Canadians leveraging alternative financial solutions like prepaid cards to help them better manage the money, so they can spend more? According to Moneris Solutions, consumer spending in Canada grew by 6.24 percent in the first quarter of 2016 on a year-over-year basis.
Although spending is up, Canadians are still focused on paying down debt. A recent survey conducted by the Canadian Imperial Bank of Commerce revealed that paying down debt remains a priority, with 26 percent of Canadians defining it as their top financial goal for 2016.
With the growing popularity of open-loop prepaid cards, many consumers are using these relatively new financial tools to alleviate their financial conundrums. Consumers looking to budget better and pay down their debt this year should know the benefits of prepaid solutions to help them meet their financial goals. Prepaid cards offer consumers the ability to set spending limits, access online services, and apps, and avoid overdraft fees, NSF fees, and interest charges.
While Canada shapes up to have more debt than ever this year, the proliferation of open-loop prepaid cards offers Canadians the convenience, stability, and flexibility they want to meet their financial obligations and pay down their debt in 2016.