TORONTO – A new bank study suggests the average Canadian household is more than $100,000 in debt and that Canadians have ramped up borrowing in the past five years.
The first annual BMO survey on household debt found that average household debt among Canadians surveyed stands at $112,329, including mortgage, credit card, line of credit and loan debt.
But the bank says so-called good debt like mortgages outweighs less favourable forms of borrowing.
While 25 per cent of those surveyed say they are debt free, 41 per cent say that they have taken on more debt in the past five years as a result of increased spending.
And 54 per cent of respondents said they expect to be debt free in the next five years.
The survey also found that 70 per cent of Canadians believe they can afford to pay down debt by paying more than the minimum, but one-third appear to be stretched with paying only the minimum amounts.
The report, conducted by Leger Marketing to measure the amount of debt Canadian households are carrying and how it’s managed, surveyed 1,507 Canadians in an online poll at the beginning of April.