Debt dilemma - MoneySense

Debt dilemma

Canadian household debt grew 5% in the first quarter of 2013 and we’re not paying it off terribly quickly.

  • A new poll for BMO suggests some 83% of Canadians have some form of debt (including mortgages), up from 74% from at the same time last year. Average monthly payments meanwhile are down from $1,138 in 2012 to $986. “With Canadian household debt levels remaining at dangerously high levels, we have to wonder why so many Canadians are making lower monthly debt re-payments.  When interest rates are low, as they currently are, Canadians need to do more than just make the minimum payment each month.  Consumers need to take advantage of our current economic climate and put more effort towards retiring their debt,” said Consolidated Credit’s Jeffrey Schwartz in a release Wednesday.
  • Meanwhile, a poll for TD Canada Trust has found that 40% of recent post-graduate students find it difficult to make minimum repayments on student loans in the first two years after graduating. As a result, many admit to postponing a number of life milestones, including buying a first home (40%), starting a family (36%), getting married (23%) and even moving out of their family home (18%), until student debts are repaid.