Waiting for our debts to disappear

Ever think to yourself: When I am 65 and ready to retire, I’ll be debt-free? I just have to clear this car/mortgage/line of credit all in due time.

Well I read in the August 30th’s issue of the Toronto Metro that CIBC (a Canadian  bank) conducted a poll about debt and came up with the following findings:

In my age group 25-to-34, Canadians felt they would be debt free by the age of 44.

In reality, only 18% of those aged 45-to-54 were actually debt-free.

Canadians holding some form of debt feel they will be debt-free by the age of 55.

In reality, only 35% of those aged 55-to-64 are actually debt-free.

Interesting, no?

I wonder what the stats are for people being debt-free who are aged 24-to-34.

DON’T WAIT FOR TIME TO CLEAR YOUR DEBTS FOR YOU

It’s true that it takes time to clear debt, but don’t use it as an excuse to not pay as much as you can towards it.

An executive with CIBC in the article (Christina Kramer) suggests that Canadians pay extra towards their debt and come up with a plan that is realistic.

5 STEPS TO CLEARING YOUR DEBT

  1. Stop getting into more debt
  2. Start a budget and track your spending
  3. Make a list of all your debts and their minimum payments
  4. Consolidate your debts to get a lower interest rate overall
  5. Make extra side income and put more $$ into your debt to clear it ASAP

So.. those of you in debt. When do you think/know you’ll be debt-free?

 

About the Author

Just a girl trying to find a balance between being a Shopaholic and a Saver. I cleared $60,000 in 18 months earning $65,000 gross/year. Now I am self-employed, and you can read more about my story here, or visit my other blog: The Everyday Minimalist.