Albertans pay off more debt: survey
TORONTO — Albertans are making a Canadian-leading average of $1,225 in debt payments each month, according to a new survey that suggests more people are in the red and taking longer to settle their accounts.
The study, released Wednesday by the Bank of Montreal, found that 83 per cent of Canadians surveyed admit to having some form of debt, an increase from 74 per cent a year earlier.
But the poll also found the average amount of monthly debt repayment has fallen by 13 per cent from a national average of $1,138 to $986.
Quebec residents reported the least amount at $768.
BMO vice-president Janet Peddigrew says these results could indicate two things: either people are having more trouble making high monthly payments, or they’re in no hurry to pay down their debt due to current low interest rates.
“We’ve had prolonged interest rates for a few years now, allowing people to take on more debt while still ensuring that it’s affordable so they’re able to manage the debt that they have,” she said.
The annual poll found nearly half of those surveyed said their household debt has decreased in the past five years, compared with 28 per cent who said it has increased during that period.
The online poll done by Pollara surveyed 1,005 Canadians between July 12 and 16.