One-in-five Canadians with debt will need to liquidate assets to pay it down in 2019

One-in-five Canadians with debt say they will need to liquidate assets (e.g. cash in their RRSPs, get a second mortgage, sell a vehicle, etc.) to help pay off (or pay down) their debt in 2019. The need to liquidate is reported as significantly higher among males (24%) vs. females (14%) and those with children under 18 (23%) vs. without children (16%). The 2019 Household Debt Survey, a Leger poll of 1,515 Canadians, was conducted for non-profit organizations Financial Planning Standards Council (FPSC) and Credit Canada as part of their series to uncover financial concerns that confront Canadians on a daily basis, such as budgeting, bill payments, debt, cost of living and job security.
New forms of debt
The survey also found that almost two-thirds of Canadians with debt (62%) anticipate taking on new forms of debt in 2019. Within this group, those under 55 years of age are significantly more likely to anticipate new forms of debt this year (67%) compared to those who are 55 and older (50%). Below are the anticipated new forms of debt:
2New/increased credit card balance (23%)
2New/increased line of credit (15%)
2New/increased vehicle loan or lease (13%)
2New/increased mortgage (12%)
As budget looms, a reminder for households to tackle debt
With federal Finance Minister, Bill Morneau set to release the federal budget on March 19, Canada’s national debt hovers above $691 billion, that’s nearly $18,700 per Canadian according to Canada’s national debt clock. Much like all levels of government, Canadian households are also awash in debt. In fact, almost half of Canadians are within $200 of not being able to pay their bills. The federal budget release is ideal timing to increase Canadians’ awareness toward household budgeting and debt. FPSC and Credit Canada recommend a few exercises based on psychology and behaviour for Canadians looking to gain clarity around topics of budgeting and debt.

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply

avatar
  Subscribe  
Notify of
Greater Vancouver Community Credit UnionGreater Vancouver Community Credit UnionGreater Vancouver Community Credit Union
ADVERTISEMENT
Cannoli KingCannoli KingCannoli King
ADVERTISEMENT
Daniela MuranoDaniela MuranoDaniela Murano
ADVERTISEMENT
Annies PlaceAnnies PlaceAnnies Place
ADVERTISEMENT

Latest News