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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Races resume at Central Alberta Raceways

Central Alberta Raceways opened for the June 20-21 weekend.

Calgary singer Erin Ross to be featured at ‘Entertainment in the Park’ July 15th

Roots/blues musician can hardly recall a time when she wasn’t passionate about performing

46 new COVID-19 cases reported Wednesday in Alberta

Province has completed more than 500,000 COVID-19 tests

PHOTOS: After a two-year hiatus, the Castor & District Museum is open for business

The hours are Thursdays, Saturdays and Sundays from 2 until 4 p.m for the duration of summer

QUIZ: A celebration of dogs

These are the dog days of summer. How much do you know about dogs?

Racist slurs during Conservative leadership debate not surprising: Lewis

Racist slurs during Conservative leadership debate not surprising: Lewis

‘These kind of issues are out here’: New doc examines police violence in Calgary

‘These kind of issues are out here’: New doc examines police violence in Calgary

‘Vowed myself to silence:’ Woman says she couldn’t cope after Edmonton attack

‘Vowed myself to silence:’ Woman says she couldn’t cope after Edmonton attack

Alberta politicians swap charges of bullying, misogyny after member ejected

Alberta politicians swap charges of bullying, misogyny after member ejected

Police chiefs call for decriminalization of personal drug use

Police chiefs call for decriminalization of personal drug use

Serbia bans mass gatherings after virus lockdown protests

Serbia bans mass gatherings after virus lockdown protests

Mississippi seeing big virus outbreak in state legislature

Mississippi seeing big virus outbreak in state legislature

CDC head sticking to school-opening guides Trump criticized

CDC head sticking to school-opening guides Trump criticized

Most Read