At what age do you plan to be completely free of debt?
British Columbians, on average, expect to be debt-free by age 56 – three years older than the average Canadian – according to a CIBC survey released June 9.
Among those in B.C., this figure has decreased by three years since 2011. Nationally, the age has gone down by two years.
Are these expectations realistic? Despite the increase in optimism, CIBC said there has been a steady increase in debt levels over the past three years. Among those between 55 and 64, more than two-thirds are still carrying debt.
“Canadians have good intentions when it comes to paying down debt, but unless they have a solid financial plan in place they may still find themselves with significant debt obligations as they near retirement,” said CIBC executive vice-president, retail and business banking Christina Kramer.
Among those who report having taken steps toward reducing debt, 46% said they have made sacrifices and cut spending, 41% have implemented household budgets and 40% have made at least one lump sum payment on top of regular payments.
“Being debt free is possible if you take action to pay down what you owe, limit the amount of new debt you take on, and stick to your financial plan,” Kramer said.
