Despite rising consumer debt, Canadians expect to be debt-free by the age of 53, according to a new poll commissioned by CIBC. When the bank conducted a similar survey in 2011, the average expected age to be totally “in the black” was 55.
The survey also revealed that more than two-thirds of Canadians between the ages of 55 and 64 are still carrying debt. The most common forms of debt for that age bracket? Lines of credit (40 per cent), mortgages (32 per cent), credit cards (29 per cent) and car loans (25 per cent).
But 55 to 64-year-olds are not the top debt carriers. That distinction belongs to people aged 35 to 44.
So, how are Canadians paying their financial dues? Most are budgeting and/or saving, but 25 per cent of those surveyed said they have not taken any action at all to accelerate debt repayment.
Nielson conducted the survey on behalf of CIBC by polling 2,050 Canadians between May 1st and May 12th, 2014.
Demand for debt up in Western Canada
On the same day CIBC published the results of their survey, credit monitoring agency Equifax released a report that said demand for credit has increased for four consecutive quarters in Western Canada, while demand in the Eastern provinces continues to slow down. From the Canadian Press:
Equifax says its first-quarter statistics show that consumers’ overall debt, including mortgages, remains high around $1.4-trillion, up slightly from $1.42-trillion in the same period last year.
But despite the uptick, Equifax says debt levels remain manageable. More here.