Down With Debt
A survey resulting in a 2013 Household Debt Report* was recently conducted to measure how much debt Canadian households are carrying, and how that debt is being managed. Highlights of the survey are as follows:
- 83 percent of Canadians have some form of debt, up from 74 percent in 2012.
- The average monthly debt payment made by Canadians has declined, dropping from $1,138 in 2012 to $986 in 2013.
- 44 percent of respondents said their household debt level has decreased over the past five years, while 28 percent said it has increased.
- 34 percent of respondents cited their mortgage as their largest source of debt, followed by car loans (19 percent of respondents) and education funding (14 percent of respondents).
The report indicated that 58 percent of the respondents expect to be debt-free within five years. For respondents who hold a current mortgage, 33 percent expect to be debt-free within five years, while 56 percent expect to be debt-free within 10 years. Of those with other types of debt, 29 percent expect to be debt-free within the next year.
Have you taken the time to evaluate your current debt situation? Today's continued low interest rates make it a great time to review your financial obligations to see if there's a way you can pay down your debt faster. For example, choosing a shorter amortization period for your mortgage will not only allow you to become mortgage-free sooner, but also save you thousands of dollars over the life of your mortgage.
Please call for a no-obligation analysis of your current mortgage loan and to find out if there's a way you can eliminate your debt faster!
* The BMO 2013 Household Debt Report was conducted by Pollara using an online survey of 1,005 Canadians fielded by Pollara between July 12th and 16th, 2013. A probability sample of this size would be accurate to +/- 3.1 percent, 19 times out of 20.