Canadians are paying 13% less per month to pay off debt than in 2012, but the number of Canadians who carry some form of debt has increased, according to a BMO report released July 24.
While the average monthly debt repayment across the country is $986, British Columbians pay 22% more with $1,205 per month. Only Alberta residents pay more per month, at $1,225. In 2012, B.C. residents paid an average of $1,273 per month.
BMO’s annual household debt report also shows that:
- the average monthly debt repayment in Canada dropped 13% to $986 from $1,138 in 2012;
- 83% of Canadians say they have some form of debt, up from 74% in 2012;
- 44% said their debt has decreased over the past five years, while 28% said it had increased;
- women are more likely than men to say their debt load has increased over the past five years; and
- mortgages, car loans and education, in that order, were the most common sources of debt.
The report also showed that 58% of the respondents said they expect to be debt-free in five years.
“Growth in Canadian household debt slowed to a more sustainable 5% rate in the first quarter of 2013 after averaging almost 9% in the past decade,” said BMO Capital Markets senior economist Sal Guatieri.
“It is expected to moderate further in response to gradually rising interest rates in the years ahead and an aging population.”
