We all know that debt is a regular part of your financial life, but at some point we all expect to get out of it – that’s what we plan for, and that’s why you’re reading this blog.
But an interesting study released on behalf of CIBC indicates that Canadians are spending a much longer time in debt than originally expected. The average age that Canadians indicate they feel they will be rid of debt is 55. However, slightly over 1/3 of Canadians 55-64 years of age are still currently in debt.
In another stunning example, at the age of 25-34, Canadians estimated they would be debt free by 44 – but only 18% stuck to their claim.
10% of Canadians feel that they will never be debt free, and 8% state they will be finally rid of debt into their 70s.
What does this mean for me?
I think we can all agree that getting out of debt is important – but we must remember that the simple passing of time isn’t going to clear up our debt issues. Canadians need a dedicated plan to get rid of debt. Reading this blog is a great place to start. Additionally, it’s time to take action.
Note that as Canadians get older, the further back they push their financial goals. Don’t get caught in that predictable trap. The longer you stay in debt, the more you actually have to pay! Check around for our best debt-busting strategies, and get serious about paying down the red in your finances.
Heed the warnings of this CIBC debt study, and lower your debt-free-age.
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