A growing number of Canadians are feeling the strains of debt despite being in a better financial position, according to a new study by the Canadian Payroll Association.
The poll found that 66% of Canadians surveyed said they are in a better financial position than they were a year ago. However, 40% of respondents said they feel overwhelmed by their current debt levels.
"We would have hoped to see in the survey results that Canadians would do more to alleviate their debt and take control of their financial situation in strong economic times," said Peter Tzanetakis, President of the Canadian Payroll Association, in a news release.
"Now is the time to pay down debt, contribute to retirement savings and take control of your financial future. Many Canadians seem to be complacent and are still not focused on the big picture."
An overwhelming 94% of survey respondents currently carry debt, led by 28% with mortgages. Nearly 20% of those polled said they carry a line of credit as well as a mortgage.
Still, fewer survey respondents admitted to a paycheque-to-paycheque lifestyle than in previous years. One-fifth of respondents said they could not come up with $2,000 within a month for an emergency expense, down from 25% in the previous survey last year.
Meanwhile, 44% of respondents said they would struggle with their financial obligations if their pay was delayed by a week, down from the three-year average of 48%.
The answer to Canada’s debt woes could be solved with higher wages, which, at 25%, was the top response when respondents were asked how to best improve their financial situation.
The online survey polled 5,074 employees from across Canada as well as a wide range of industry sectors between June 22 and August 1. The survey was developed by the Canadian Payroll Association and conducted by Framework Partners.
