Welcome!

News Feed Item

BMO Psychology of Debt Report: Stress-Testing Canadians as They Plan to Pay Off Their Debts in Seven Years

- Debt levels and stress impact the young and old

TORONTO, ONTARIO -- (Marketwired) -- 08/27/14 -- BMO released today a report on the psychology of Canadians, revealing how much debt they expect to take on within the next year, how long they expect to carry debt, and how it is affecting their daily life.

Over the next year, Canadians expect to take on an average of $19,534 in debt, with a goal to be debt-free in seven years. The report revealed the different generational profiles for debt levels:


--  Canadians aged 34 - 54 hold the highest debt levels, and expect to take
    over a year longer than the national average to become debt free
--  Baby Boomers (Canadians aged 55 +) expect to take on more debt than
    their Millennial (18 - 34 year olds) counterparts, but aim to be debt
    free 2.7 years earlier

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                            Household Debt by Age
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 18 - 34     35 - 54         55+    National
----------------------------------------------------------------------------
Current debt level            $   73,305  $   92,476  $   57,307  $   76,140
----------------------------------------------------------------------------
Amount of debt expected to
 be taken on within the next
 year                         $   14,402  $   25,415  $   17,935  $   19,534
----------------------------------------------------------------------------
Expected time to pay off
 debt                          7.6 years   8.2 years   4.9 years     7 years
----------------------------------------------------------------------------

"Household debt levels at various ages reflect the financial obligations and milestones at different times in one's life," said Tony Tintinalli, Regional Vice President, BMO Bank of Montreal. "Millennials are more likely to be carrying student loans, saving for or starting mortgage payments on their first home, and entering the beginning stages of careers. Baby Boomers are likely both to hold more assets and be closer to paying off larger debts."

Mr. Tintinalli added that Baby Boomers still face the milestone expenses of helping children with tuition, weddings, and saving for retirement, accounting for their need to continue to take on debt. Canadian's aged 35 - 54 are in the middle of their financial milestones - possibly still carrying student loans and mortgage debts, and facing payments for children's education and retirement.

Stress levels and concern surrounding debt impact each generation differently:


--  While two-thirds of Millennials (66 per cent) feel their debt has caused
    them to miss out on activities (trips, social gatherings, personal
    indulgences etc.), only 38 per cent of Baby Boomers feel they have
    missed out
--  Millennials are the most ashamed of their level of debt (50 per cent),
    and the majority (59 per cent) feel that their household debt is a major
    personal problem
--  Those aged 35 - 54 hold the highest debt levels, but only four in ten
    (39 per cent) feel it is a major personal problem

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             Debt Stress by Age
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Debt has caused me to:                     18 - 34   35 - 54   55+ National
----------------------------------------------------------------------------
Miss out on activities (trips, social
 gatherings, personal indulgences)              66%       52%   38%      51%
----------------------------------------------------------------------------
Think/stress over debt levels multiple
 times a day                                    56%       41%   24%      39%
----------------------------------------------------------------------------
Lose sleep from stress                          50%       43%   22%      38%
----------------------------------------------------------------------------
Have arguments with family/significant
 other/friends                                  50%       38%   16%      34%
----------------------------------------------------------------------------
Borrow money from family/significant
 other/friends to help manage household
 debt levels                                    51%       33%   13%      31%
----------------------------------------------------------------------------
Feel ashamed at the level of debt I've
 accumulated                                    50%       39%   23%      37%
----------------------------------------------------------------------------

"Developing and following a realistic budget that includes both monthly expenses and leisure spending can help reduce stress and identify areas where spending can be scaled back," said Mr. Tintinalli. "Payment and spending obligations change as different life milestones are met. Visiting a financial advisor at least annually helps to ensure your current budget is in line with your priorities."

Results from the BMO Household Debt 2014 survey are from interviews with an online sample of 1,002 Canadians conducted between June 30th and July 3rd, 2014. These results have been compared to the Household Debt 2013 survey, which was conducted with an online sample of 1,005 Canadians between July 12th and 16th, 2013.The margin of error for a probability sample of 1,002 or 1,005 is +/- 3.1%, 19 times out of 20.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had total assets exceeding $586 billion and approximately 47,000 employees at July 31, 2014.

Contacts:
Media Contacts:
Kathleen Savage, Toronto
(416) 867-3996
kathleen.savage@bmo.com

Ron Monet, Montreal
(514) 877-1873
ronald.monet@bmo.com

Internet: www.bmo.com
Twitter: @BMOmedia

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often un...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...