Majority are comfortable with debt

The survey found that nearly a third (31%) of those with debt have gone deeper in debt in the past year, citing a mix of necessary and discretionary purchases, which included buying a new car, going on vacation, and repairing or renovating their homes.

Highlights of the poll include:

• 66% of Canadians say they are comfortable with their debt level, comprised of:
  • 25% who say they are very comfortable and could take on more debt if needed
  • 41% who say they are fairly comfortable but would prefer not to take on any more debt
• 34% of Canadians say they are uncomfortable with their debt level, comprised of:
  • 23% who say they are somewhat uncomfortable — they are making it work but any change to their current situation would present a problem; and
  • 10% who say they are very uncomfortable — they have more debt than they can handle and are feeling financially squeezed.

A CIBC poll conducted earlier this year found that more than half of all Canadians have struggled with financial decisions and two-thirds agreed that they would benefit from additional advice on financial matters.

Read: Keep clients out of the red in their golden years

The comfort level with debt increases with age, with 81% of Canadians with debt who are 65-plus saying they are comfortable compared to 62% of 18-to-24 year olds.

Those 65 years and over were less likely to hold a mortgage (16%) than other age groups and were more likely to be debt free (56%). Among younger Canadians 18-to-24 years just starting out and with generally lower salaries, the most common type of debt was student loans (37%) and credit card debt (20%).

The poll also looked at how Canadians view debt in general, finding that 67% of Canadians think debt is okay if it is managed carefully, while 28% say debt should be avoided at all costs. Another 5% think debt is a tool to help them get the things they want.

Read: Canadian household debt levels drop