Survey: Homeowners need help fighting debt

It seems Canadian homeowners will need to call in reinforcements to help win their war against household debt.

For the fourth consecutive quarter, debt reduction remains the top priority for Canadian homeowners. According to a poll conducted by Manulife, almost 30% of homeowners rated debt freedom as their top financial priority while more than 71% rated it at a priority level of 8, 9 or 10 out of 10.

While debt remains a pivotal focus for homeowners, more than 40% of respondents reported they either lost ground or are holding steady in their goal to reduce household borrowing. Twenty seven percent actually saw their debt increase and 15% remained exactly where they were a year ago.

“It’s encouraging that homeowners are focused on debt reduction but these results suggest many find it very difficult to make any headway,” says Doug Conick, President and CEO of Manulife Bank of Canada. “One potential explanation for these findings isn’t a lack of desire to be debt-free, but rather the need for advice, guidance and expertise.”

Only about a quarter of homeowners seek professional financial advice when it comes to managing debt and day-to-day cash flow.

“People stand a far better chance of reaching their goals if they work with a financial advisor and have a plan in place,” Conick says.

For the poll, Manulife surveyed 1,000 Canadian homeowners between ages 30 to 55 with household income of more than $50,000. The poll was conducted online by Research House from February 14-28, 2011.