Sep 5, 2018
Canadians feeling weight of debt, despite better financial position: Study
Many Canadians are feeling the debt crunch, despite two-thirds of the country being in a better financial position than previous years, according to a new study released Wednesday.
The Canadian Payroll Association found that 66 per cent of Canadians surveyed said they are in a better financial position than they were one year ago, according to the study. However, 40 per cent of respondents said they feel overwhelmed by their current debt levels, the study found.
“We would have hoped to see in the survey results that Canadians would do more to alleviate their debt and take control of their financial situation in strong economic times,” said Peter Tzanetakis, president of the Canadian Payroll Association, in a release.
“Now is the time to pay down debt, contribute to retirement savings and take control of your financial future. Many Canadians seem to be complacent and are still not focused on the big picture.”
An overwhelming 94 per cent of respondents currently carry debt, led by 28 per cent with mortgages. Nearly 20 per cent of those polled said they carry a line of credit.
Still, fewer survey respondents admitted to a paycheque-to-paycheque lifestyle than in previous years. One-fifth of respondents said they could not come up with $2,000 within a month for an emergency expense, down from 25 per cent in the previous annual survey. Meanwhile, 44 per cent of respondents said they would struggle with their financial obligations if their pay was delayed by a week, down from the three-year average of 48 per cent.
The answer to Canada’s debt woes could be solved with higher wages, which at 25 per cent was the top response when respondents were asked how to best improve their financial situation.
However, money isn’t everything. More than one-third of millennials in their 30s, about 38 per cent, placed work-life balance as a greater concern than how much they take home.
The online survey tallied a total of 5,074 employees from across Canada as well as a wide range of industry sectors between June 22 and Aug. 1. The survey was developed by the Canadian Payroll Association and conducted by Framework Partners.
