CIBC released a poll this past Monday that showed that of Albertans between the ages of 45 to 64, only 18 percent considered themselves debt free. That is a long time goal for many across Canada. In Alberta, younger residents are confident enough in their financial planning that they will be debt free by the time they reach the age of 52.
Christina Kramer, an executive from CIBC notes that is important for Canadians to remain on tract with their plans to get debt paid off. Everyone needs a personal goal, perhaps a specific age, to use as their debt-free date. While Albertans averaged 52, those in British Columbia averaged 58, and residents of Ontario expected to be debt free by the time they reached 54. The average for the entire nation was 55.
The time it would take to pay off debts averaged between 10 and 15 years from their current age. That time frame didn’t vary no matter if the respondent was a young adult of 20 or a near senior of 55. Very few Albertans believed they would have debt for the long term, with less than four percent thinking they would be indebt until they reached the age of 70. Then again, 11 percent felt they would never be free of debt.
The key is to have a plan. This could include refinancing homes, making extra payments to cut down on interest paid and being realistic about what you purchase and can afford.