While consumer debt is on the rise, many Canadians believe they will be debt-free by age 53.
A poll conducted for CIBC shows that, on average, Canadians who currently hold some form of debt expect to have paid it off by the age of 53. This is two years sooner than in a similar poll conducted in 2011.
The current facts, however, paint a much different picture. Of those aged 55-64, 67% say they still hold debt, which is an increase from 64% in 2011. In this demographic, 40% have lines of credit, 32% still have mortgages, 29% have credit card debts, and 25% are paying off car loans.
The poll also revealed that just 16% of those surveyed had spoken with a financial advisor about better managing their debt, and 25% had not taken any action at all to accelerate debt repayment.
"Trying to do it yourself can work for some people, but most Canadians would benefit from sitting down with an advisor who can look at their personal situation, and help them work out a realistic plan on how they can reduce their debt while building their savings," commented Christina Kramer, executive vice-president of retail and business banking at CIBC.