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

Kelowna city council approves off-leash dog beach on Lake Avenue

This is the fourth off-leash dog beach to be implemented in Kelowna

Power outage in West Kelowna

Power is out for those living near Mount Boucherie Secondary School

Two Okanagan residents convicted and fined for hunting out of season

Both residents were convicted in a Kelowna provincial court

Nominations open for Kelowna’s 45th annual Civic and Community Awards

The awards recognize the outstanding achievements and contributions made in the community each year

B.C. government clarifies rototilling rules for Okanagan lakes

Okanagan Basin Water Board recently signed a five-year agreement for rototilling in Okanagan region

UPDATE: Furnace blamed for house fire in east Kelowna

The house suffered some smoke damage

Book examines history of B.C. wine industry

Author Luke Whittall has studied the growth of the industry since the mid-19th century

Chilliwack family’s therapy dog injured in hit and run

Miniature pit bull Fifty’s owner is a single mother facing close to $10,000 in vet bills

Police search warrant valid in Sagmoen case: Supreme Court

Evidence expected to be presented in court

Competitive Christmas decorating takes sarcastic turn in Princeton

It’s not uncommon for neighbours to good-naturely compete with one another when… Continue reading

Alleged Penticton shooter John Brittain waives preliminary trial

Brittain will return to court in January to schedule a trial date

Feds not enforcing standards on Hungarian duck imports, B.C. farmer says

‘You have no way of knowing what’s in the bag’

No reports yet of Canadians affected by New Zealand volcano eruption, feds say

Missing and injured included tourists from the U.S., China, Australia, Britain and Malaysia

CMHA Vernon Crisis Chat celebrates six-month milestone

With more than 20,000 calls and interactions every year, CMHA seeks more volunteers for Interior

Most Read