Have Debt? You are not alone.

I have always said you increase your wealth two ways; save your money and invest, or pay down your debt. 

Jonathan Chevreau (Financial Post) had an interesting summary of a CIBC survey on Canadian’s personal debt.  Some of the highlights include;

·         46% of Canadian Boomers are still paying off mortgages

·         75% of Canadian Boomers carry some form of Debt

·         42% of Canadians with debt see it as a major obstacle to achieving their long-term goals

·         89% of individuals ages 35-44 have some sort of debt, while Canadians 18-24 and over 65 where the least likely to have debt

·         Financial planners and advisors recommend against carrying debt  into retirement

·         Many of the surveyed boomers showed interest in making lump sum payments towards debt; 61% of those with debt say they have made progress this year.

Why do we see high levels of debt while Canadians have shown interest in aggressively paying off debt?  And, why do many Canadian Boomers work towards building a retirement portfolio while not addressing debt issues as stringently? 

Managing debt is an important part of your overall Financial Plan; so why is it so difficult to discuss your debt with your Financial Planner?  In fact, only 21% of Canadians with debt have spoken with an advisor in the last year to discuss debt reduction strategies. 

Don’t be embarrassed or afraid to ask me how to prioritize debt payments or strategize a debt payment schedule; that is what I am here for.  Like I said, you increase your wealth two ways, saving and investing your money, or paying down your debt.

Have a great weekend; enjoy these last couple of weeks of summer.

Tracey