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.

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
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
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, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...