A new survey finds that the overwhelming majority of Canadians say that the average household carries too much debit, while two-in-five do not expect to escape debt in their lifetime.
According to the Manulife Debt Survey, a whopping 94 per cent of Canadians say the average household is in too much debt. What’s more, 45 per cent now report that their spending is increasing faster than their income. That’s up from 33 per cent in the spring.
The study also found that non-mortgage related debt is climbing, with 60 per cent reporting debt on credit cards that carry a balance, which represents a 12 percentage point increase over what was observed in the spring.
“There is a financial wellness crisis, and it’s affecting Canadians of all demographics,” said Rick Lunny, president and CEO of Manulife Bank. “The good news is that there are intuitive, helpful tools out there to make people’s financial decisions easier and lives better.”
Baby boomer Canadians are in better financial shape than millennials and gen-Xers, with three-in-five reporting that they are better off than their parents were at their age. In contrast, under half of gen-Xers and millennials feel the same way.
Millennials reported feeling more optimistic than gen-Xers about their spending.
The Manulife Bank of Canada poll surveyed 2,001 Canadians in all provinces between ages 20 and 69 with a household income of more than $40,000. The survey was conducted online by Ipsos between Sept. 20 to Sept. 26. National results were weighted by gender, age, region and education.
This story originally appeared here.
