TORONTO, October 10, 2012 - A year later, more Canadians have no personal (non-mortgage) debt (26 per cent in 2012, up from 22 per cent in 2011), according to the 2nd Annual RBC Debt Poll. On average, Canadians carry $13,141 in personal debt, up $84 from a year ago, with Ontarians carrying the most debt ($15,361) and Quebecers with the least ($10,171).
While four-in-ten Canadians (40 per cent) describe themselves as "comfortable" with their current personal debt level (compared to 45 per cent in 2011), one-in-three Canadians (34 per cent) admit their debt level causes them anxiety (compared to 32 per cent in 2011).
"Many Canadians have some level of comfort with their personal debt, but the very personal nature of carrying debt can often stir up mixed emotions," explained Richard Goyder, vice-president of personal lending, RBC. "It's encouraging that the results show more Canadians have become debt-free over the past year and that those who still have debt want to do more to reduce it."
The RBC Debt Poll found that just over half of Canadians (51 per cent, compared to 49 per cent in 2011) say it is more important to pay down debt than save and invest for the future right now. Four-in-ten (41 per cent, down from 44 per cent in 2011) place an equal importance on saving and investing, as well as paying down debt. Meanwhile, a minority of Canadians (eight per cent) think now is the time to save and invest for the future, rather than pay down debt.
Similar to a year ago, caution around adding to their debt load has led some Canadians to delay or cancel purchases or plans, such as taking a vacation (26 per cent, compared to 24 per cent in 2011) and buying a big ticket item (19 per cent, compared to 20 per cent in 2011).
Also akin to last year's poll, three-quarters of Canadians (76 per cent) feel they are in better shape regarding their personal debt than their friends and neighbours (compared to 75 per cent in 2011). This also is in line with attitudes revealed in a separate RBC study, in which Canadian consumers described their own level of knowledge about finances as higher than that of the "average Canadian."
"Whether you feel you're in good financial shape or facing some challenges, it's important to have a strategy for managing debt," added Goyder. "Making informed financial decisions is part of an overall plan to achieve financial balance."
Poll highlights from across Canada
About the 2nd Annual RBC Debt Poll
The RBC Debt Poll was conducted by Ipsos Reid. Data was collected from July 27 to August 2, 2012. The online survey is based on a randomly selected representative sample of 2,041 adult Canadians that was statistically weighted by region, age and gender composition according to the Census data. The results are based on a sample where quota sampling and weighting are employed to balance demographics and ensure that the sample's composition reflects that of the actual Canadian population according to Census data. Quota samples with weighting from the Ipsos online panel provide results that are intended to approximate a probability sample. An unweighted probability sample of 2,041, with 100 per cent response rate, would have an estimated margin of error of ±2 per cent, 19 times out of 20. The margin of error within subgroups of the sample will be higher.
About RBC and financial advice, tools
All Canadians can visit the RBC Advice Centre rbcadvicecentre.com for guidance on how to handle their debt. Interactive tools and calculators, such as the Debt Reduction Plan and Debt Consolidation Calculator, provide customized information covering all facets of saving and using credit. For RBC personal banking clients, an online financial management tool, myFinanceTracker, is available at no cost to create a set budget and track their spending habits.
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