SYS-CON MEDIA Authors: Jim Kaskade, Yeshim Deniz, Elizabeth White, Greg Ness, Sean Houghton

News Feed Item

BMO Psychology of Debt Report: Stress-Testing Canadians as They Plan to Pay Off Their Debts in Seven Years

- Debt levels and stress impact the young and old

TORONTO, ONTARIO -- (Marketwired) -- 08/27/14 -- BMO released today a report on the psychology of Canadians, revealing how much debt they expect to take on within the next year, how long they expect to carry debt, and how it is affecting their daily life.

Over the next year, Canadians expect to take on an average of $19,534 in debt, with a goal to be debt-free in seven years. The report revealed the different generational profiles for debt levels:


--  Canadians aged 34 - 54 hold the highest debt levels, and expect to take
    over a year longer than the national average to become debt free
--  Baby Boomers (Canadians aged 55 +) expect to take on more debt than
    their Millennial (18 - 34 year olds) counterparts, but aim to be debt
    free 2.7 years earlier

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                            Household Debt by Age
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 18 - 34     35 - 54         55+    National
----------------------------------------------------------------------------
Current debt level            $   73,305  $   92,476  $   57,307  $   76,140
----------------------------------------------------------------------------
Amount of debt expected to
 be taken on within the next
 year                         $   14,402  $   25,415  $   17,935  $   19,534
----------------------------------------------------------------------------
Expected time to pay off
 debt                          7.6 years   8.2 years   4.9 years     7 years
----------------------------------------------------------------------------

"Household debt levels at various ages reflect the financial obligations and milestones at different times in one's life," said Tony Tintinalli, Regional Vice President, BMO Bank of Montreal. "Millennials are more likely to be carrying student loans, saving for or starting mortgage payments on their first home, and entering the beginning stages of careers. Baby Boomers are likely both to hold more assets and be closer to paying off larger debts."

Mr. Tintinalli added that Baby Boomers still face the milestone expenses of helping children with tuition, weddings, and saving for retirement, accounting for their need to continue to take on debt. Canadian's aged 35 - 54 are in the middle of their financial milestones - possibly still carrying student loans and mortgage debts, and facing payments for children's education and retirement.

Stress levels and concern surrounding debt impact each generation differently:


--  While two-thirds of Millennials (66 per cent) feel their debt has caused
    them to miss out on activities (trips, social gatherings, personal
    indulgences etc.), only 38 per cent of Baby Boomers feel they have
    missed out
--  Millennials are the most ashamed of their level of debt (50 per cent),
    and the majority (59 per cent) feel that their household debt is a major
    personal problem
--  Those aged 35 - 54 hold the highest debt levels, but only four in ten
    (39 per cent) feel it is a major personal problem

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             Debt Stress by Age
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Debt has caused me to:                     18 - 34   35 - 54   55+ National
----------------------------------------------------------------------------
Miss out on activities (trips, social
 gatherings, personal indulgences)              66%       52%   38%      51%
----------------------------------------------------------------------------
Think/stress over debt levels multiple
 times a day                                    56%       41%   24%      39%
----------------------------------------------------------------------------
Lose sleep from stress                          50%       43%   22%      38%
----------------------------------------------------------------------------
Have arguments with family/significant
 other/friends                                  50%       38%   16%      34%
----------------------------------------------------------------------------
Borrow money from family/significant
 other/friends to help manage household
 debt levels                                    51%       33%   13%      31%
----------------------------------------------------------------------------
Feel ashamed at the level of debt I've
 accumulated                                    50%       39%   23%      37%
----------------------------------------------------------------------------

"Developing and following a realistic budget that includes both monthly expenses and leisure spending can help reduce stress and identify areas where spending can be scaled back," said Mr. Tintinalli. "Payment and spending obligations change as different life milestones are met. Visiting a financial advisor at least annually helps to ensure your current budget is in line with your priorities."

Results from the BMO Household Debt 2014 survey are from interviews with an online sample of 1,002 Canadians conducted between June 30th and July 3rd, 2014. These results have been compared to the Household Debt 2013 survey, which was conducted with an online sample of 1,005 Canadians between July 12th and 16th, 2013.The margin of error for a probability sample of 1,002 or 1,005 is +/- 3.1%, 19 times out of 20.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had total assets exceeding $586 billion and approximately 47,000 employees at July 31, 2014.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect...
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to th...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Media announced that Centrify, a provider of unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT, has launched an ad campaign on Cloud Computing Journal. The ads focus on security: how an organization can successfully control privilege for all of the organization’s identities to mitigate identity-related risk without slowing down the business, and how Centrify provides ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...