Canadians currently holding some form of debt expect to be debt-free by the age of 53, according to a new CIBC poll conducted by Nielsen.

That’s two years sooner than a similar poll conducted in 2011, despite a steady climb of consumer debt levels during that time.

The poll also revealed that for Canadians currently aged 55-64, more than two-thirds are still carrying debt, emphasizing the need to take action to make those debt-free dreams a reality.

The top types of debt currently held by 55-64 year olds include: lines of credit (40 per cent); mortgages (32 per cent); credit cards (29 per cent); car loans (25 per cent).

“Canadians have good intentions when it comes to paying down debt, but unless they have a solid financial plan in place they may still find themselves with significant debt obligations as they near retirement,” says Christina Kramer, executive vice president, retail and business banking, CIBC.

The poll also shows that while some Canadians with debt are trying to lighten their debt loads, they are not likely to be talking about their goal to be debt-free with an advisor:

  • 46 per cent have made sacrifices or cut spending in order to better manage debt
  • 41 per cent have implemented a household budget
  • 40 per cent have made at least one lump sum payment towards their debt, on top of regular payments

However, only 16 per cent have talked to a financial advisor about managing their debt better, and 25 per cent say they have not taken any action at all to accelerate debt repayment.

Annual CIBC research on financial priorities shows debt repayment has been the number one priority for Canadians four years in a row. However, the current poll suggests that despite their efforts, Canadians may not be making significant progress against that goal, pointing to the need for getting advice as an important first step in tackling their debt.

“These results show that few Canadians are meeting with an advisor and having a conversation about how to reduce their debt,” says Kramer. “Trying to do-it-yourself can work for some people, but most Canadians would benefit from sitting down with an advisor who can look at their personal situation, and help them work out a realistic plan on how they can reduce their debt while building their savings.”

The poll also revealed some good news for those aiming to pay off their debt in their 50s — 33 per cent of Canadians aged 55-64 are currently debt-free. “Being debt free is possible if you take action to pay down what you owe, limit the amount of new debt you take on, and stick to your financial plan,” notes Kramer.

Each week, Nielsen interviews approximately 1,000 Canadians through teleVox, the company’s national telephone omnibus survey. These results were gathered from a sample of 2,050 Canadians between May 1 and 12. A sample of this size has a margin of error of plus or minus 2.16%, 19 times out of 20.