Canadians Paying Off Debt

Toronto, ONTARIO - According to a study conducted by Ipsos-Reid on behalf of Scotiabank, less than half (48%) of Canadians 25-64 years of age who are the main or joint financial decision-maker of the household have "structured their debt so they pay the lowest amount possible," and three-quarters (75%) "consider their debt payments to be a part of their day-to-day living expenses."

A majority (85%) of respondents say they "will have a lot more freedom when all their debt is paid off" and they expect to "live debt free" in their early fifties (52.6 years of age mean average).

An Ipsos-Reid survey conducted for Scotiabank in February 2003 also uncovered that nine in ten (90%) Canadian adults think "paying down debt such as a mortgage or other loans" is important.

These are the findings of an Ipsos-Reid poll conducted on behalf of Scotiabank between October 14th and October 19th, 2003. The poll is based on a randomly selected sample of 1,000 adult Canadians between the ages of 25 and 64, who were the main or joint financial decision-maker in the household. With a sample of this size, the results are considered accurate to within 177 3.1 percentage points, 19 times out of 20. The margin of error will be larger within regions and for other sub-groupings of the survey population.

The Ipsos-Reid poll conducted for the Bank of Nova Scotia in February 2003 is based on a randomly selected sample of 1000 Canadians across the country interviewed between February 4th and February 6th 2003. The results are considered accurate to within +/- 3.1 percentage points, 19 times out of 20. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2001 Census data.

Less than half (48%) of Canadians 25-64 years of age who are the main or joint financial decision-maker of the household agree (28% "strongly agree," 20% "somewhat agree") with the statement, "I have structured their debt so they pay the lowest amount possible." The same proportion (46%) disagree (17% "somewhat disagree," 29% "strongly disagree"), while 5% "neither agree nor disagree," and 1% "doesn't know."

Three-quarters (75%) of respondents agree (44% "strongly agree," 31% "somewhat agree") with the statement, "I consider their debt payments to be a part of their day-to-day living expenses." Two in ten (21%) disagree (9% "somewhat disagree," 12% "strongly disagree") with the statement, while 4% "neither agree nor disagree."

A majority (85%) of respondents agree (66% "strongly agree," 19% "somewhat agree") that they "will have a lot more freedom when all their debt is paid off," while one in ten (11%) disagree (5% "somewhat disagree," and 6% "strongly disagree"), and 4% "neither agree nor disagree."

On average, respondents expect to "live debt free" in their early fifties (52.6 years of age mean).

• The age respondents expect to "live debt free" appears to increase with the respondent's age: 25-34 years olds (45.7); 35-44 year olds (52.0); 45-54 years olds (56.6); 55-64 year olds (60.2).

An Ipsos-Reid survey conducted for Scotiabank in February 2003 also uncovered that nine in ten (90%) Canadian adults think "paying down debt such as a mortgage or other loans" is important (77% "very important," 13% "somewhat important"). One in ten (9%) do not consider it to be important (2% "not too important," 7% "not at all important") and 1% "doesn't know."

Please open the attached PDF files to view the factum and detailed tables.

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For more information on this news release, please contact:
John Wright
Senior Vice-President
Ipsos-Reid Public Affairs
(416) 324-2900