Being debt-free is a long term goal for many Canadians. Many of us though, don’t have a plan to ensure that we remain focused on debt repayment in order to meet our goal of being debt-free by a specific age. A recent CIBC poll conducted by Harris-Decima found that, on average, “Canadians tend to believe they will be debt-free within approximately 10 to 15 years of their current age group.” Here in Manitoba, the average age (rounded to the nearest year) is 56 compared to the national average of 55. Are you on track?
Christina Kramer, Executive Vice President, Retail Distribution and Channel Strategy, CIBC notes that a “key finding in this poll is that the passage of time alone is not enough to achieve the goal of paying down debt. Canadians with a goal of being debt free would benefit from having a realistic plan in place that includes extra payments towards their debt and a strategy to minimize their interest costs.”
The poll also states that Canadians do see progress in their debt repayment. 61% of those who are currently repaying debt say that they see progress in this area so far this year. This would suggest that people are taking extra steps, such as cutting back where possible or making lump sum payments in order to help pay down their debt faster. Other tips would include tracking your spending habits, sticking to a budget and using cash.
For more information on how to pay down your debt or if you would like to receive a FREE financial assessment, contact one of our mortgage professionals at VERICO One Link Mortgage & Financial today!