Canadians making good progress on debt

More than half of Canadians say they are making good progress paying down their debt, still many fear it’s not enough, according to a new survey.

Harris-Decima and CIBC polled more than 2,000 adults and found 72% are holding some form of debt. The good news is 61% say they are making good progress repaying it with many recently making at least one lump sum payment on what they owe.

The bad news is 42% feel their debt burden is weighing on their financial goals.

In order to cope, 44% of indebted respondents have instituted a household budget while 46% plan to make sacrifices in order to better manage their debt load.

“Managing debt as part of their overall financial plan is top of mind for Canadians in 2011, and these latest poll results show that some progress is being made,” said CIBC executive Christina Kramer.

“Taking simple steps such as making an extra payment or implementing a budget for your family can make a positive difference in your long term plans for debt reduction.”

Only 21% of Canadians have talked with an advisor in the last year about how to better manage their debt. The rest are losing out, CIBC said.

“Reviewing your overall interest costs and determining how best to allocate your money towards your debt can help take years off your mortgage and reduce the amount you pay in interest on a monthly basis,” Kramer said.

Canadians in their late thirties and early forties are most indebted, CIBC found. British Columbia is home to biggest portion of debt-free Canadians at 36% while neighbouring Alberta is home to the smallest portion of debt-free adults at 23%.

The Harris-Decima/CIBC poll has a margin of error of +/-2.2%, 19 times out of 20.