More Canadians carrying debt
Nothing can be said to be certain, except death and taxes...and now debt.
According to a new report from BMO Bank of Montreal, more Canadians are carrying a household debt load (83 per cent) compared to 74 per cent in 2012.
The survey found that mortgage debt was the main source of debt for many Canadians followed by car loans and funding education.
The study also found that the average monthly debt payment has declined, dropping from $1,138 to $986.
Janet Peddigrew, Vice President, BMO Bank of Montreal, says, "Paying down debt as quickly as possible is essential to the long-term financial stability of Canadian households, so it's encouraging to see that Canadians' debt burdens have eased over the past year.
"Many appear to be getting a head start on reducing their debt levels while interest rates remain at all-time lows, which is prudent because we don't expect rates to stay that way forever."
According to the report, women (32 per cent) are more likely than men (24 per cent) to say that their debt load has increased over the past five years; younger Canadians are the most likely to be increasing their debt load; while those aged 65 and older are more likely to be paying down debt rather than increasing their debt load.
The good news though, is the majority of those with debt (58 per cent) expect to be debt-free within five years.
By Donna Donaldson, MSN Money
Are you finding your household debt load is growing? What is the main source of your debt load?
Posted by: fred weissenborn | Jul 24, 2021 8:46:55 PM
GET YOUR HEAD IN ORDER , YOU WILL NEVER BE DEBT FREE UNTIL YOU CUT BACK ON WANTS THAT YOU DONT NEED.WAKE UP , THE ONLY ONE YOU WILL HURT IS YOURSELF.
Posted by: Atul K | Jul 24, 2021 9:27:40 PM
I cannot comment on whether household debt load is increasing. However, if the family decides to live within it means then I don't think the debt load will increase. Bascially one has to USE CREDIT RESPONSIBLY. The biggest debt load for my family will be mortgage debt.
Posted by: Darleneartist | Jul 24, 2021 9:47:10 PM
I myself am debt free. I live on a small pension and have credit cards. One for travel one for bills and I always pay more then what I owe. It comes in handy when I go through a bad month. It takes me two to three years of saving nickels,dimes,quarters and loonies and the odd toonie to travel.
I have been doing it this way for over 25 years. I feel I don't want to die owing anything to any one. My mother's motto is "Never be a borrower or a lender ' I added,'Without having a I.O.U. and paying it off within a year.
I have made loans to friends I trust and believe me I don't loan em a dime without my IOU signed and dated.
I have even taken one friend to court and won because of the IOU. I hate it but I believe in paying it forward,too.
So be wise and live within your budget, big or small. I hope this helps those that save and those that struggle to save.
GRR I miss saving pennies, Darleneartist.
Posted by: Triveni | Jul 26, 2021 3:33:07 AM
Many times the debit load increases without any planning.
Posted by: Steven | Jul 27, 2021 5:16:01 AM
From my perspective it's all about how people view debt. If Canadians are getting into bad debt like using credit to buy luxury items that don't produce any positive cash flow short and long term then debt is bad however if Canadians are using credit to build assets and build positive cash flow then debt can be a good thing. The idea is to use debt to make yourself richer if a person doesn't have that mentality I think they might want to think twice about getting into any kind of debt. If a person doesn't understand debt or our monetary system here in Canada money will walk all over them!