Two in five indebted Canadians don’t ever expect to escape debt, says survey

Baby boomers appear to be in better financial shape than their younger generation X and millennial counterparts

Two in five indebted Canadians don’t expect to escape debt in their lifetimes, says a new survey.

The Manulife Bank of Canada debt survey released Friday also found that 94 per cent of respondents agree that the average household has too much debt while 67 per cent of those in debt assume everyone else is as well.

The spending-to-income ratio is trending negatively as 45 per cent of Canadians said their spending is increasing faster than their income. That’s up from 33 per cent who said so in the spring. Just 12 per cent of respondents noted that their income is growing faster than their spending.

“There is a financial wellness crisis, and it’s affecting Canadians of all demographics,” said Rick Lunny, president and CEO of Manulife Bank.

More than half (55 per cent) of Canadians reported considerable non-mortgage debt, up nine percentage points from a spring survey. Sixty per cent say they have credit cards carrying a balance, up from 48 per cent in the spring.

The online survey was conducted amid growing concerns about the country’s high level of consumer indebtedness as total debt per consumer surged to $71,979 in the second quarter, up from about $57,000 five years earlier, according to credit monitoring service Equifax.

Baby boomers appear to be in better financial shape than their younger generation X and millennial counterparts.

ALSO READ: Zombie debt will haunt more Canadians as scourge of indebtedness rises, experts say

Sixty per cent of baby boomers surveyed said they are better off financially than their parents were at the same age, compared with just under half (49 per cent) for generation X and millennials.

Generation X, which believes it has the most debt, saves the least of its after-tax income and is most likely to report that spending is outpacing income. It is also the most skeptical about ever being debt-free in its lifetime, according to the survey.

Millennials are also struggling but are more likely to indicate that their income is increasing faster than spending. Technology is also helping them more than for older cohorts who said it has helped them to manage their debts, compared with just one in three generation X and baby boomers.

The online poll, conducted Sept. 20-26, surveyed 2,001 Canadians in all provinces aged 20 to 69 with household income of more than $40,000. Internet-based surveys cannot be assigned a margin of error because online polls are not considered random samples.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Blackfalds RCMP officer’s firearm discharged in struggle

Red Deer and Sylvan Lake RCMP assist after police vehicle stolen

Sylvan Lake RCMP assist Red Deer, Blackfalds in major drug bust

RCMP arrest six and seize drugs, cash, firearms and vehicles in drug trafficking investigation

Red Deer-Lacombe MP, other Conservative MPs meet with AB justice minister

Calkins said the justice system is a revolving door for criminals targeting rural areas

UPDATE: Sylvan Lake neighbourhood flooded after water main break

Crews are out now repairing the break, though no time of completion is known at this time.

VIDEO: Success of wildlife corridors in Banff National Park has advocates wanting more

Demand for more highway protection escalated after seven elk were killed by a semi-trailer near Canmore

Rebels win two straight heading into Christmas break

Two third period goals give Red Deer 3-1 win over Swift Current

Five things of note from Trudeau’s mandate letters to his ministers

Some marching orders come from the Liberal Party’s campaign, while others are new additions

Scheer’s resignation tips party into internal war over school tuition payments

The Conservatives have a Toronto convention already scheduled for April

Two adults, two youths from Maskwacis charged in ATV, gun theft

Wetaskiwin RCMP Investigate Break, Enter & Theft and Weapons Offences - Arrests

Indigenous mother wins $20,000 racial discrimination case against Vancouver police

Vancouver Police Board ordered to pay $20,000 and create Indigenous-sensitivity training

‘He was good for the West:’ Sadness, surprise in Saskatchewan over Scheer

Saskatchewan Premier Scott Moe and his predecessor, Brad Wall, both thanked Andrew Scheer

Johnson claims Brexit mandate with new conservative majority

Conservative Party wins 365 seats in the House of Commons

Couple who bought $120k banana duct-taped to wall say artwork will be ‘iconic’

Pair compared it to Warhol’s ‘Campbell’s Soup Cans,’ which was initially ‘met with mockery’

Most Read