Nearly half (46%) of Canadians dealt with a major unexpected event or emergency during the past year that required most of them either to borrow money or dip into their savings to cover the unplanned costs, finds a CIBC poll.
Almost three-quarters (74%) of those who experienced the unexpected did not have enough dedicated emergency savings and were forced to find other sources of money to cover the expense. Almost one-third (29%) borrowed money from family, friends or a financial institution, or tapped their line of credit or credit cards. If they couldn’t access new funds, they either adjusted their household budget (18%) or used savings earmarked for other purposes (14%).
Among the most common emergencies were:
- major household repairs or purchases (27%);
- major auto repairs or purchases (23%); and
- illnesses or medical bills (16%).
The poll also found those ages 35 to 54 were more likely than the average Canadian not to have a rainy day fund (46% versus 41%), yet they were also more likely to have experienced an emergency in the past year (51% versus 46%).
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