When will you be Debt-Free? Most Canadians Think by 55

There’s no doubt that if you hold a mortgage, a personal loan, or credit card debt, you’ve thought at some point of just when exactly, you will get out of that debt. But according to a recent survey done by Harris-Decima for CIBC, your visions for when you’ll be debt-free may not actually paint an accurate picture. According to the survey, most Canadians think they’ll be completely debt-free by the time they’re 55; however, only one-third of people currently in that age group actually are. And while the survey does reveal some interesting findings, it’s important that Canadians use those findings and apply them to their own life – if they really want to be debt-free by the time they’re the magic age of 55.
The poll not only found that most Canadians, on average, think they’ll be debt-free by the age of 55, but also that younger people expect to be debt-free even before then. People aged 25 to 34 thought that they’ll most likely be out of debt by the age of 44. However, the news is even more dismal with only 18% of Canadians in the 45 – 54 age group actually being debt-free. The youngest Canadians, on average, to think that they’d be debt-free sooner rather than later were those in Alberta; these residents believe that they’ll be out of debt by the time they are 52.
However, not all Canadians were as optimistic, thinking that they’ll be well over the age of 55 before they saw a debt-free lifestyle. 8% of Canadians thought that they’d be in their 70s before they were debt-free; while 10% of Canadians thought that they’d never be completely debt-free.
But it’s not all glum news, and just because we have a positive vision for the future doesn’t mean that we can’t bring that vision to life. All it takes, says Christina Kramer, executive VP of Retail Distribution and Channel Strategy for CIBC, is a little planning. The problem, she says, lies in the fact that Canadians seem to have a habit of simply picking an age they want to be debt-free and hoping it will happen within that time frame. When that’s the case, it’s almost certain not to. But, by making a financial plan and including in that plan a way to consistently pay off debt, more Canadians than the current 33% might find that they actually are debt-free by the time they’re 55.