Two in five indebted Canadians don’t ever expect to escape debt, says survey

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

Global Village Nanaimo’s pop-up store in open from now until June 10 in Nanaimo North Town Centre. (Photo submitted)
Global Village Nanaimo non-profit shop selling wares during Fair Trade Month

Pop-up store set up in Nanaimo North Town Centre during May

B.C. Centre for Disease Control data showing new cases by local health area for the week of May 2-8. (BCCDC image)
Island’s COVID-19 case counts the lowest they’ve been all year

On some areas of Island, more than 60 per cent of adults have received a vaccine dose

Emergency service vehicles respond to motor vehicle incident at Highway 1 and 1st Avenue in Ladysmith. (Submitted photo)
Truck hits person using mobility scooter at northern entrance of Ladysmith

Northbound traffic is down to one lane and southbound traffic is being diverted to Oyster Bay Drive

RCMP outside the Nanaimo Ice Centre investigating a report of a suspicious person. The incident resulted in hold-and-secures at two nearby schools, but those emergency procedures have now been lifted. (Chris Bush/News Bulletin)
UPDATE: Police response a result of man walking around Nanaimo marsh with airsoft rifle

Two schools had gone into hold-and-secure procedures Thursday morning, May 13

Nanoose Bay volunteer firefighters work to extinguish a bush blaze on Ida Lane on Monday, May 10. (Mandy Moraes/Black Press)
Flames from backyard burn in Nanoose Bay shoot higher than owner’s home

Fire chief reported blaze took more than an hour and a half to suppress

RCMP outside the Nanaimo Ice Centre investigating a report of a suspicious person. The incident resulted in hold-and-secures at two nearby schools, but those emergency procedures have now been lifted. (Chris Bush/News Bulletin)
UPDATE: Police response a result of man walking around Nanaimo marsh with airsoft rifle

Two schools had gone into hold-and-secure procedures Thursday morning, May 13

Beef to the ‘senior’ 30-plus taggers. You are too old to be doing these juvenile antics.
Beefs & Bouquets, May 12

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail editor@nanaimobulletin.com

A nurse prepares a dose of the COVID-19 vaccine in Kelowna on Tuesday, March 16. (Phil McLachlan/Black Press)
British Columbians aged 20+ can book for vaccine Saturday, those 18+ on Sunday

‘We are also actively working to to incorporate the ages 12 to 17 into our immunization program’

Nanaimo city council has approved funding for an upgraded bridge crossing Millstone River in Bowen Park. (News Bulletin photo)
New bridge in Bowen Park part of City of Nanaimo’s active transportation plans

Replacement of Lenhart Bridge next year expected to cost $237,000

Municipal governments around B.C. have emergency authority to conduct meetings online, use mail voting and spend reserve funds on operation expenses. (Penticton Western News)
Online council meetings, mail-in voting option to be extended in B.C.

Proposed law makes municipal COVID-19 exceptions permanent

The AstraZeneca-Oxford University vaccine. (AP/Eranga Jayawardena)
2nd person in B.C. diagnosed with rare blood clotting after AstraZeneca vaccine

The man, in his 40s, is currently receiving care at a hospital in the Fraser Health region

Canada’s demo Hornet soars over the Strait of Georgia near Comox. The F-18 demo team is returning to the Valley for their annual spring training. Photo by Sgt. Robert Bottrill/DND
F-18 flight demo team returning to Vancouver Island for spring training

The team will be in the Comox Valley area from May 16 to 24

Saanich police and a coroner investigated a fatal crash in the 5200-block of West Saanich Road on Feb. 4, 2021. (Devon Bidal/News Staff)
Police determine speed, impairment not factors in fatal Greater Victoria crash

Driver who died veered across centre line into oncoming traffic for unknown reason, police say

Ladysmith RCMP safely escorted the black bear to the woods near Ladysmith Cemetary. (Town of Ladysmith/Facebook photo)
Bow-legged bear returns to Ladysmith, has an appointment with the vet

Brown Drive Park closed as conservation officers search for her after she returned from relocation

Most Read