Monday, August 29, 2011

Canadian Delusions of Debt

Delusions of Debt Freedom Abound
Canadians have an unrealistic vision of their financial futures. A new CIBC poll conducted by Harris-Decima found most Canadians think they’ll be debt-free in another decade or so when, in fact, that isn’t likely to happen.One key finding is that across all age groups (18 to 64), Canadians, on average, believe they will be debt-free 10 to 15 years from their current age. However, the CIBC report notes that many Canadians still hold debt beyond the average age identified by each age group.For example, Canadians 25 to 34 believe they will be debt-free, on average, by age 44. Yet among today’s 45 to 54-year-olds, only 18 per cent report being debt free, suggesting today’s 25 to 34-year-olds are in for a bit of a rude shock. Overall, the poll found Canadians expect they will be debt-free by age 55, but in fact only 35 per cent of today’s 55 to 64-year-olds have actually reached credit nirvana.