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Canadians are among the best prepared to handle a financial emergency, according to a global study of residents in 15 countries by research firm TNS. Roughly seven in 10 consumers in Canada, Italy and the Netherlands said they would be able to get their hands on $2,000 in 30 days in the event some unexpected need arose in the next month. Residents in Luxembourg were the most confident (90%) they could obtain the needed cash. In contrast, less than half of consumers in the U.K., the U.S. and Germany said they would be able to get a hold of the funds. In most countries polled, household savings were the primary source of emergency funds for consumers, with 89% of Dutch residents and 86% of Luxembourg residents expected to use this source. Around half of residents in Canada, Germany, the U.S., the U.K. and Portugal would use cash. Mexicans and Argentineans were the least likely to access savings and the most likely to look to family for help. Roughly a third of German, British, French and American consumers would ask family for assistance. Canadians were the least likely to ask for money from family (22%). Canadians, however, were the most likely to borrow money for emergency purposes. About 28% would use their credit cards for emergency funds, whereas only 20% of British and American consumers would use plastic for emergencies. Canadians would also be the most likely to use a home equity line of credit or take out a second mortgage to pay for unexpected expenses, roughly 13% of residents in Canada and Germany, compared with fewer than 7% in all other countries surveyed. Americans and Mexicans were the most likely to get a second job or work overtime to earn extra income as well as sell their own belongings for extra cash.
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