More than half of all British Columbians holding debt made at least one extra payment to bring down their balances in the last 12 months, according to a new CIBC (TSX:CM) poll conducted by Harris/Decima.
Amid warnings about rising household debt levels and the prospect of higher interest rates, B.C. residents primarily focused these extra payments on reducing credit card and line of credit balances.
According to the study, 71% of B.C. residents hold some form of debt, in line with the national average
Among those with debt, 55% have made at least one lump sum payment to their debt sometime in the last year, compared with the national average of 49%.
B.C. residents making extra payments reduced credit card balances (60%), followed by line of credit balances (47%) and mortgages (29%).
Mike Stevenson, senior vice-president, Western Canada, CIBC, said, “Debt management is top of mind for British Columbians, and these poll results show that many B.C. residents are taking steps towards reducing their debt.”
Stevenson also noted that, despite the increased awareness British Columbians have about the importance of managing debt, it’s a topic they are less likely to seek advice about than other financial matters – a gap that suggests more B.C. residents would benefit from a strategy to tackle debt reduction.
“We know from past research that B.C. residents are more likely to seek financial advice about saving for retirement than they are about managing their debt.”
