TORONTO--(BUSINESS WIRE)--Fig Financial Inc. (“Fig”), Canada’s premier personal loan provider, released its Financial Challenges Barometer, which sheds light on the pressing issues faced by Canadians in managing rising costs and debt, underscoring the essential need for accessible financial options.
An overwhelming 82% of Canadians are burdened with existing debt and nearly one in five (18%) remain uncertain they can fully pay it off. This financial strain is further compounded by the struggle to cover essential items, which 35% of Canadians have identified as their biggest financial challenge over the past year. Many have resorted to cutting back on non-essentials, delaying purchases, or dipping into savings to manage these rising costs.
“If you’re only making the minimum payment on your credit cards, you’re only covering the interest and not paying down the principal amount of what you actually owe,” said Francois Cote, Founder & CEO, Fig Financial. “You’re never going to get out of debt that way, so it’s very concerning to see how many Canadians are trapped in this vicious cycle.”
Even the need to go to a traditional bank can get in the way of tackling these challenges, as one quarter of Canadians (25%) have postponed a major financial decision due to a lack of time to visit a bank. This highlights a significant gap in the Canadian market for online financial services, which offer increased accessibility and convenience. As a result, these digital solutions are becoming more popular, providing Canadians with the tools they need to manage their finances more effectively.
In the past five years, 73% of Canadians have adopted more technology and digital services to manage their finances, with a striking 75% feeling increasingly independent in doing so. This trend reflects a significant shift towards digital solutions, highlighting Canadians' growing preference for financial autonomy and flexibility. As they become more tech-savvy, Canadians are embracing online financial products, drawn by advantages such as lower fees (47%), greater convenience (34%), and competitive interest rates (32%).
With one third of Canadians (33%) reporting they do not know their credit score and nearly one in five (19%) saying they are not confident in managing their finances independently, it’s clear there is a need for more informative financial services to empower Canadians.
In response, Fig offers a robust online personal loans platform that not only meets these needs but also enhances financial independence. Fig’s Knowledge Base is filled with educational content and practical advice for many common questions Canadians have, such as, what is debt consolidation? What's the difference between personal loans, credit cards & lines of credit? And how do I improve my credit score?
There are simple financial strategies many Canadians can benefit from like leveraging personal loans to transfer expensive debt from credit cards, potentially saving thousands of dollars in interest. Fig makes this possible through rates starting as low as 8.99%, which is significantly lower than the average credit card APR of 21.99%.
"We envision a brighter financial future for Canadians, where traditional barriers, like having to go to a bank, no longer stand in their way. That’s why we designed our online personal loan platform to be fast, accessible and easy to use,” said Cote. “I invite every Canadian who needs a loan to give Fig a chance. With our free, no-obligation personalized loan quotes, you can safely explore your options without impacting your credit score.”
Committed to setting a new standard in digital financial services, Fig helps Canadians consolidate debt through its user-friendly online personal loans, offering competitive rates and a hassle-free application process. With this in mind, Fig is running a special contest. Customers who receive an approved Fig loan quote by December 16th will automatically be entered for a chance to win $10,000, subject to eligibility requirements.
For more details on the $10,000 contest, visit Fig’s contest page. For more information about how Fig can transform your personal lending experience, visit www.fig.ca.
Methodology
These findings are from a survey conducted by Fig Financial from October 18th to October 22nd, 2024, among a representative sample of 1,516 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.
About Fig
Fig is on a mission to revolutionize personal lending in Canada with fast, transparent and convenient online personal loans. Fig is a unique company backed by Fairstone Bank and Koru, a groundbreaking venture studio owned by Ontario Teachers’ Pension Plan. Fairstone has almost 100 years of lending experience allowing Fig to combine the best of both worlds - the agility and scrappiness of the start-up world and the experience, stability and resources of the corporate world.
