More Canadians are debt-free: RBC

Canadians have been working hard in 2012 to reduce their debt levels. In fact, 26% have no personal debt, up from 22% in 2011, finds RBC.

Further, 51% say it’s more important to pay down debt than save or invest in the future, up from 49%.

Read: Canadians focused on reducing debt

“It’s encouraging the results show more Canadians have become debt-free over the past year and that those who still have debt want to do more to reduce it,” says Richard Goyder, vice president of personal lending, RBC.

Read: How financially savvy are Canadians?

Of those still carrying debt, 34% say it causes them anxiety. This is up from 32% in 2011. And only 40% are comfortable with their current situation, down from 45% in 2011.

Additional findings include:

• Canadians carry $13,141 in personal debt on average; Ontarians carry the most debt ($15,361) and Quebecers have the least ($10,171);
• Canadians are cancelling or delaying purchases, such as taking a vacation (26%) and buying a big-ticket item (19%);
• 76% feel they’re in better shape than friends and neighbours.

Here are some articles to help you discuss debt with clients.

Your clients aren’t setting personal budgets

Too many boomers retire with debt

The right way to manage debt and cash flow

Help clients become debt-free faster

Beware when clients co-sign mortgages

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.