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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

On Friday, Jan. 22, 2021, Aldergrove Community Secondary School tweeted out a notice to families that have started receiving text messages about a new information system. (ACSS Twitter feed)
Not spam – Langley School District surprises families with text messages

The district said more information about the new notification system will come soon

Sources White Rock/South Surrey Food Bank is located at 2356 156 St. (File photo)
Door-to-door canvassers not working on behalf of Sources Food Bank, says manager

Accredited White Rock, South Surrey, Langley food bank does not canvas for donations

Tyler Tardi will serve as a fifth on Team Laycock at the 2021 Tim Hortons Brier. (Black Press Media file photo)
Tyler Tardi to serve as alternate for B.C. team at Brier

Langley/Cloverdale curler to serve as ‘fifth’ on Team Laycock at Calgary-hosted championships

Langley resident Joel Harrison has been signed by the Vancouver Whitecaps in the 2021 MLS Superdraft (Vancouver Whitecaps/Special to The Star)
Langley soccer player joins Vancouver Whitecaps through 2021 MLS Superdraft

20-year-old centre back Joel Harrison joins the team with three other players

Langley MP Tako van Popta visited Aldergrove's Return-It Depot to commend owner Sung Kim on the oil collection project. (Ryan Uytdewilligen/Aldergrove Star)
Langley MP commends Aldergrove Return-It Depot’s environmental efforts

Oil collection has been occuring at the facility since December through the help of a grant

Toronto Public Health nurse Lalaine Agarin sets up for mass vaccination clinic in Toronto, Jan. 17, 2021. B.C. is set to to begin its large-scale immunization program for the general public starting in April. THE CANADIAN PRESS/Frank Gunn
B.C.’s COVID-19 mass vaccinations expected to start in April

Clinics to immunize four million people by September

Surrey provincial court. (File photo: Tom Zytaruk)
New COVID-19 protocols set for provincial courthouses

The new rules were issued on Jan. 21, and took effect immediately

Police in Vancouver looking for male suspect who allegedly spat and attacked a store manager for not wearing a mask, at 7-Eleven near Alma Street and West 10th Avenue just before noon on Dec. 17, 2020. (Vancouver police handout)
VIDEO: Man spits on 7-Eleven manager over mask rule, sparking Vancouver police probe

‘Unfortunately, the store manager sustained a cut to his head during the assault’

The Vancouver-based SAR team successfully rescued two lost snowshoers off of the west side of Tim Jones Peak in the early morning of Monday, Jan. 19. (North Shore Rescue photo)
B.C.’s busiest SAR team raises alarm after 2021 begins with fatality, multiple rescues

‘People beyond ski resort areas of Seymour, Grouse, and Cypress go without cell reception,’ SAR warns

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Post-COVID-19 recovery clinic in Surrey, at Jim Pattison Outpatient Care and Surgery Centre. (Photo: Fraser Health)
Surrey to host 1 of 3 post-COVID recovery clinics in Lower Mainland

The Jim Pattison Outpatient Care and Surgery Centre is located at 9750 140th Street

Competitors make their way through the course at the 2019 Canadian Cross Country Championships, which was hosted by Abbotsford in 2019. (File photo)
Abbotsford to host 2023 Canadian Cross Country Championships

Clearbrook Park last hosted the event in 2019, Ottawa hosting 2021 and 2022 races

Officers investigate the scene after a pedestrian was struck and killed on Friday morning. (Ben Lypka/Abbotsford News)
Male pedestrian, 37, killed in Abbotsford after being struck by vehicle

Collision took place in 31800 block of South Fraser Way on Friday morning

Police are searching for an alleged sex offender, Nicole Edwards, who they say has not returned to her Vancouver halfway house. (Police handout)
Police hunt for woman charged in ‘horrific’ assault who failed to return to Surrey halfway house

Call 911 immediately if you see alleged sex offender Nicole Edwards, police say

Most Read