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

Eight Comox Valley non-profits get government funding

The Province has announced $314,000 in funding for eight not-for-profit organizations in… Continue reading

‘Pop-up’ Christmas Craft Fair at Tsolum school

Funds from table sales and concession support school in El Granadillo, Mexico

Comox Valley Glacier Kings split another pair of games

Yetis best Buccaneers on Saturday at home after road loss to Storm

Campbell River mom’s iPhone containing priceless photos stolen from Victoria hospital parkade

The phone contained photos, heartbeat recordings of her late son

City of Courtenay installing aqua dam in Lewis Park

With winter approaching, seasonal storms are likely to begin affecting the East… Continue reading

VIDEO: Led by ‘Marriage Story,’ Netflix dominates Golden Globe noms

Netflix flexed its muscles across all categories, just as it is girding for battle with a host of new streaming services

In surprise move, defence won’t call witnesses for accused in Abbotsford school killing

‘Change of instructions’ results in defence closing case without calling evidence

B.C. VIEWS: An engine that hums right along

First Nations are leading a new surge of investment in B.C.

74% of 911 calls are from cellphones, so know your location: E-Comm

Cell tower triangulation generally only narrows location down to the block someone is calling from

No negligence in RCMP actions in B.C. teen’s overdose death: IIO

Police acted properly when they responded to the first reports of the boy being in distress

320 years since the ‘Big One’ doesn’t mean it’s overdue: B.C. professor

‘It could happen today, tomorrow or 100 years from now’

Would you leave your baby alone to go to the gym? This Canadian dad did

The man identifies just as a divorced dad with a nine-month-old baby

B.C. coroner asking for help identifying man found dead in Peace region

Mounties have deemed the man’s death not suspicious and believe he died earlier this year

Lawyer competence includes knowledge of Indigenous-Crown history: B.C. law society

All practising lawyers in B.C. will be required to take a six-hour online course covering these areas

Most Read