Canadians are confident that they have a good handle on their personal debt and believe they’re in better financial shape than most, a new survey suggested Wednesday.
The poll, conducted by Ipsos Reid and released by the Royal Bank of Canada (TSX: RY), suggested nearly 70 per cent of Canadians have achieved non-mortgage debt levels that they are comfortable managing.
More than a fifth of survey respondents, or 22 per cent, reported being entirely clear of non-mortgage debt, while a further 45 per cent were not concerned about their current debt levels, the poll said.
Three-quarters of those surveyed said they believed they were in better financial shape than their friends and neighbours.
“The majority of Canadians feel confident that they are in a better debt position than everyone else, but the reality is that effectively managing credit takes discipline and proper planning,” RBC vice-president of personal lending Richard Goyder said in a statement.
“Taking a realistic look at your financial situation, along with planning ahead, spending within your means and getting the right type of financial advice are the keys to managing debt.”
The survey suggested indebtedness weighs heavily on the national conscience. The poll found 93 per cent of respondents believed paying down debt was just as important or more critical than saving money for the future.
Young Canadians were particularly anxious about getting out of debt, the survey found, saying 39 per cent of those between 18 and 34 reported feeling anxious about the money they owe. Anxiety levels fall to 21 per cent in those 55 or older, the poll found.
Debt concerns are prompting greater caution among Canadians, RBC said, adding 39 per cent of those surveyed reported delaying vacations or major purchases because of their financial burdens.
The survey also highlighted regional differences in Canadians’ approach to debt repayment.
Anxiety about debt levels was highest in Alberta, where 36 per cent of respondents reported being concerned about their outstanding balances. Quebecers were most likely to focus on paying down debt instead of saving for the future, with 54 per cent saying repayment was their more pressing focus.
Comfort with debt levels was highest in Manitoba, where 62 per cent of respondents said they were content with their current financial situation.
The online poll of slightly more than 2,000 Canadians conducted Aug. 18 to Aug. 23 is considered accurate within plus or minus two percentage points 19 times out of 20.