Canadians focused on reducing debt

More than half of Canadians say they’re on track to pay off debt in 2012, finds an ING DIRECT survey. Only 23% say they’re nowhere near paying off credit cards and loans.

Read: Help clients become debt-free faster

Also, 62% say they save money on an annual basis, and 78% save at least $1,000 each year.

“Despite these promising results, it’s important not to become complacent,” warns Peter Aceto, president and CEO, ING DIRECT. “Maintaining this positive momentum and savings discipline are key to fulfilling short and long term financial goals.”

He adds more than one-third of Canadians still can’t afford to set aside $25 per week. For these clients, Aceto suggests forgoing impulse purchases—saving $100 per month can turn into $6,000 in five years, plus interest.

Read: The true cost of debt

Those who are able to put aside extra funds do so by adjusting their lifestyles and cutting back on non-essentials such as eating out (51%), shopping (39%) and entertainment (27%).

Read: Canadians pinch pennies, pound debt

Additional survey findings include:

• 33% of Canadians are in a better financial situation than they were 12 months ago;
• Global economic uncertainty is driving 38% to save more;
• The most important short term goals are paying down loans (24%), vacation (15%) and emergency funds (13%);
• Retirement (28%) and paying down mortgages (16%) are the most important long term savings goals.

Read: Too many boomers retire with debt

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.