More Canadians (26%, +4 pts) Have No Personal Debt Compared to Last year, Although Those With Debt Are Less Comfortable (40%, -5 pts) and More Anxious (34%, +2pts) With Their Debt Level This Year

Toronto, ON - One-quarter (26%) of Canadians say they have no personal debt, according to a new poll conducted by Ipsos Reid on behalf of RBC, up from two in ten (22%) who said they had no personal debt in 2011. Also, less Canadians in 2012 are comfortable with their level of debt (-5 pts, 45% in 2011) compared to more Canadians who are anxious about their debt level this year (+2 pts, 32% in 2011). Four in ten (40%) are `comfortable with their debt level' (18% very comfortable/22% somewhat comfortable) this year, compared to one-third (34%) who are `anxious about their debt level' (10% great deal of anxiety/24% some anxiety).

• Albertans (36%) are the most likely to have no personal debt, followed by residents of Saskatchewan and Manitoba (32%), British Columbians (27%), and Ontarians (27%). Two in ten (20%) Quebecers say they have no personal debt, while Atlantic Canadians (14%) are the least likely to say they carry no personal debt.
• Despite this, Quebecers (45%) and Atlantic Canadians (44%) are the most likely to say they are comfortable with their level of debt, followed closely by British Columbians (42%). Four in ten Albertans (38%) and Ontarians (37%) are comfortable with the level of debt they carry, while only one-third of Saskatchewan and Manitoba residents (34%) are comfortable with their debt level.
• Although they are one of the most comfortable with their debt level, Atlantic Canadians (42%) are also the most likely to say their debt level causes them anxiety, followed by residents of Ontario (36%), Quebec (35%), and Saskatchewan and Manitoba (34%). Three in ten (30%) British Columbians are anxious about their debt level, while Albertans (26%) are the least anxious about their debt.

With the amount of Canadians carrying no personal debt higher than last year, it would be expected that more Canadians would be `happy' about their debt situation compared to last year, but this is not the case. The same number of Canadians are `happy' with the current debt situation compared to last year. Six in ten (58%) are `happy' with their debt situation in 2012, while four in ten (42%) are `not happy'.

• Two-thirds of Albertans (67%) and British Columbians (64%) are `happy' with their current debt situation, followed by six in ten residents of Saskatchewan and Manitoba (59%) and Ontarians (57%). Although a majority (54%) of Quebecers and Atlantic Canadians are happy with their current debt situation, they are the least likely to be so.
• Almost half (46%) of Quebecers and Atlantic Canadians are `not happy' with their current debt situation, followed closely by residents of Ontario (43%) and Saskatchewan and Manitoba (41%). Four in ten (36%) British Columbians are not happy with their current debt situation, while Albertans (33%) are the least likely to say they aren't happy with their situation.

A slim majority (51%) of Canadians believe that it is more important to pay down their debt to save and invest for the future, up slightly from 2011 (49%). Four in ten (41%, down 3pts. from 2011) believe that saving and investing for the future are as important as paying down debt, while only 8% (up 1pt. from 2011) say that it is more important to save and invest for the future than pay down debt.

• Atlantic Canadians (64%, +13 pts vs. national average) and Quebecers (57%) are the most likely to say it's more important to pay down debt than to save for the future, likely because they are the most unhappy with their current debt situation, followed by half (49%) of Ontarians and Albertans who share this sentiment. 46% of Saskatchewan and Manitoba residents believe that paying down debt is more important than saving and investing for the future, while British Columbians (42%) are the least likely to believe this.
• British Columbians (52%, +11 pts vs. national average), however, are the most likely to believe that saving and investing in the future are as important to them as paying down their debt, followed by a slim minority of Saskatchewan and Manitoba (47%) and Albertan (46%) residents. Four in ten Ontarians (41%) and Quebecers (35%) believe this, while only three in ten (29%) Atlantic Canadians believe saving and investing in the future is as important as paying down debt.
• Ontarians (10%) are most likely to believe that saving and investing for the future is more important than paying down debt, slightly edging residents of Quebec (8%), Saskatchewan and Manitoba (7%), Atlantic Canada (7%), and British Columbia (6%). Only 5% of Albertans believe that saving and investing for the future is more important that paying down their debt.

Although six in ten (59%) have not delayed or cancelled any plans in the last two years due to their debt situation, some Canadians have. One-quarter (26%,) have delayed taking a vacation, while two in ten (19%) have delayed or cancelled purchasing a big ticket item for their home. One in ten have delayed buying a new home (9%) or retiring from working full-time (6%). 4% of Canadians have delayed or cancelled buying a second or additional property (in addition to their home), starting a new business, or having children due to their debt situation in 2012.

When it comes to comparing their own non-mortgage (credit cards, line of credit, personal loans, etc.) debt situation to that of their friends and neighbours, Canadians feel like they are doing better with their debt situation. Three-quarters (76%) of Canadians believe they are in `better' (36% much better/40% slightly better) shape than their friends and neighbours. Less than one-quarter (24%) of Canadians believe that their non-mortgage debt situation is currently `worse' (7% much worse/17% slightly worse) than that of their friends and neighbours.

• Western Canadians (British Columbians - 82%, Saskatchewan and Manitoba residents - 80%, and Albertans (78%) are the most likely to say their non-mortgage debt situation is better than their friends and neighbours. Three-quarters (76%) of Ontarians feel the same way, while Atlantic Canadians (73%) and Quebecers (72%) are the least likely to think they are doing better than their friends and neighbours.
• Having said that, Quebecers (28%) and Atlantic Canadians (27%) are most likely to believe they are doing worse with regards to their non-mortgage debt situation compared to their friends and neighbours, followed closely by Ontarians (24%). Two in ten residents of Alberta (22%) and Saskatchewan and Manitoba (20%) say the same, while British Columbians (18%) are the least likely to say they are doing worse than their friends and neighbours.

The average Canadian estimates they are carrying a personal debt (not including a mortgage) of $13,141. When excluding those who say they don't have any personal debt, this number increases to $21,814.

These are some of the findings of an Ipsos Reid poll conducted between July 27th and August 2nd, 2012 on behalf of RBC for their second annual debt poll. For the survey, a sample of 2,041 Canadians, aged 18+, from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll has a credibility interval of +/- 2.5 percentage points for adult Canadians. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error. For more information on how to calculate credibility intervals, please visit the Ipsos website at http://ipsos-na.com/dl/pdf/research/public-affairs/IpsosPA_CredibilityIntervals.pdf.

For more information on this news release, please contact:

Sean Simpson
Associate Vice President
Ipsos Reid Public Affairs
416.572.4474
[email protected]

About Ipsos Reid

Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

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