MORTGAGE Blog & ARTICLES
Canadians View Debt as Top Priority
The latest CIBC poll suggests that Canadian view debt as top priority in 2015. It was the 5th year in a row wherein paying debt down came out of the top concern in the CIBC annual survey. This also suggest that those professionals planning for retirement are having doubts whether to retire or not due to increasing immediate financial endeavors.
The latest poll suggests that 22% of Canadian view paying down debt as their primary priority, which only 12% cite savings as their main concern. Other priorities of Canadian include playing bill and getting by (10%), retirement planning (5%), and budgeting or managing day to day spending (9%). Canadians nearing the retirement age are having doubts whether they should retire or not, and have shifted their focus on paying their debts down. Canadians at the age 45 to 54 years old, 32% cited that repaying debt is their topmost priority for 2015. This has doubled compared to 16% the prior year’s poll. Among professionals from 55 to 64 years old, 25% cited that paying debt is their primary financial endeavor for 2015, compared to 14% the prior year.
With this, it’s righteous to assume that debt repayment doubling its importance for Canadians nearing retirement. However, it’s still important to stress out that they should not put aside their retirement planning. The pool results were derived from 1,014 Canadians at the peak of their retirement saving years.
Why Debt Repayment is the Topmost Priority of Canadians
Year after year, more and more Canadians are giving much importance to paying their debts down than saving money for retirement. The recent CIBC pool proves this once more, but why is that? Probably, the main reason to this is that Canadians want to retire debt free, with complete financial freedom. Paying down your debts is the best way to hit financial freedom when you reach the age of 55 to 75 years old.
For an instance, if you can only get 2% return out of anything insured, you’re much farther to put your retirement funds to a debt that you guaranteed to your lenders or creditors to pay off interest rate that are much higher than two percent. Over time, the difference in savings will increase you can build higher net worth. Thinking about your debt at all times or worrying about them can hurt your quality of life or even shorten your lifespan, so why you should put your retirement money to gamble? Probably, the best way is to pay your debt while you still can or while you still have your job.
If you want to get out of the pit of debt that you are into right now, it is recommended that you work with a mortgage consultant. Not only this professional can help you to get into a mortgage debt, but also assist you to get out of one. The advise that you will get from a mortgage consultant is incredibly unbelievable, allowing you to even pay your entire debt before your retire.
- Bank of Canada
- Commercial Mortgages
- Company Updates
- Financial Planning
- First Time Home Buyers
- Home Ownership
- Housing Market
- Market Watch
- Mortgage Education
- Mortgage Products
- Mortgage Rates
- New Mortgage Broker Updates
- Notable News
- Personal Finance
- Property Investments
- Real Estate
- Refinance & Renewal Mortgages