Despite household debt in Canada remaining near record highs, two-thirds of Canadians are comfortable with the amount of debt they have, finds a CIBC poll.
The survey found that nearly a third (31%) of those with debt have gone deeper in debt in the past year, citing a mix of necessary and discretionary purchases, which included buying a new car, going on vacation, and repairing or renovating their homes.
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Highlights of the poll include:
Sixty-six percent of Canadians say they are comfortable with their debt level, comprised of:
- 25% who say they are very comfortable and could take on more debt if needed
- 41% who say they are fairly comfortable but would prefer not to take on any more debt
Thirty-four percent of Canadians say they are uncomfortable with their debt level, comprised of:
- 23% who say they are somewhat uncomfortable—they are making it work but any change to their current situation would present a problem; and
- 10% who say they are very uncomfortable—they have more debt than they can handle and are feeling financially squeezed.
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The comfort level with debt increases with age, with 81% of Canadians with debt who are 65-plus saying they are comfortable compared to 62% of 18-to-24 year olds.
Those 65 years and over were less likely to hold a mortgage (16%) than other age groups and were more likely to be debt free (56%). Among younger Canadians 18-to-24 years just starting out and with generally lower salaries, the most common type of debt was student loans (37%) and credit card debt (20%).
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The poll also looked at how Canadians view debt in general, finding that 67% of Canadians think debt is okay if it is managed carefully, while 28% say debt should be avoided at all costs. Another 5% think debt is a tool to help them get the things they want.
More than 3,000 Canadians participated in the poll. Discrepancies in or between totals are due to rounding.
This story originally appeared on our sister site, Advisor.ca.