Thursday 7 June 2012

Half of Canadians expect to be debt-free by 2017

According to a recent survey, half of the Canadian population have stated they expect to be debt-free by 2017. A poll conducted by Leger Marketing revealed that the debt of the average Canadian sits at $112,329. In this article from the Financial Post, we also learn that 43% of Canadians aged 35-44 owe more than $100,000.

Despite interest rates sitting at historic lows, Canadians are still encouraged to reduce their amount of household debt. Recent statistics have shown that a large percentage are heeding these warnings and taking steps towards becoming debt-free. Another recent survey found that 25% of Canadians currently have no debt, and Statistics Canada reports that mortgage debt accounts for 63% of household debt, while consumer credit comes in at 28%. Many still view residential mortgage debt as "good debt."

For those hoping to become debt-free faster, there are several ways to accomplish this goal. Many looking to renew their mortgages are reaping the benefits of low mortgage rates, and locking in for a ten year term. Many of the current ten year mortgages allow generous pre-payment privileges - one more way to pay down a mortgage faster. Some other steps toward financial freedom include increasing the frequency of mortgage payments or decreasing the mortgage amortization period. A recent post shows many Canadians are taking at least one if not more of these steps to reduce their debt.

For more information about paying your mortgage off faster, contact a qualified Mortgage Broker.

To read the full article from the Financial Post, click here.

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