Nearly a quarter of Canadians are debt-free
Almost a quarter of Canadians have shed their personal debt, according to a survey released Tuesday. In addition, many Canadians are becoming more aware of the benefits of making it a priority to pay down high interest debt first.
A recently conducted survey on debt has revealed that 24% of Canadians have eliminated their non-mortgage debt this year. Jeffrey Schwartz, executive director of Consolidated Credit Counselling Services of Canada, believes that many have realized the many benefits of either paying debts down, or moving them to lower-interest vehicles.
"They are shifting their unsecured debt to secured debt. So from one perspective, they are doing some positive money management, by paying lower rates on their debt," Schwartz said. "But the big key here is to alter their spending habits," he continues, indicating that over time, people can develop spending habits that become beyond their means when financial circumstances change.
It is expected, going forward, that most Canadians will have the same reaction to high-interest borrowing, and will continue to curb their debt accumulation.