The majority of Canadians have some kind of idea of how they will pay down their debts, according to a poll released by Toronto-based Bank of Montreal (BMO) on Monday. Advisors, however, can help clients turn those hazy plans to something more concrete.

“It’s very positive that people are thinking about [debt repayment],” says Janet Peddigrew, vice president, Mid-Western Ontario, BMO, “but to be truly effective and successful at erasing debt you need a formal plan.”

According to the survey, called the BMO 2013 Household Debt Report, 81% of Canadians have at least a vague plan for debt repayment. However, only 36% of survey respondents have a detailed plan in place that includes fixed payments and specific timelines.

Advisors can help clients design a more specific plan to repay their debts by bringing up a few topics in conversation. Advisors should ask a lot of questions when clients come in for their annual meeting, says Peddigrew. For instance, advisors should ask clients about what their priorities are now and in the future, their understanding of good vs. bad debt, interest rates and what debt should be paid off first.

The survey also found that a person’s age indicates whether or not that person is likely to have a detailed debt repayment plan. Forty-two per cent of Canadians aged 18 to 34 have a specific plan around paying down debt, according to BMO, compared with 29% of people aged 45 to 54 years old.

Peddigrew believes that younger Canadians are more likely to have a detailed plan because they are more comfortable with technology. “They’re used to using the tools that are available online,” she says. “They do their research, they have better knowledge on understanding good and bad debt, they use the [online] tools to help them structure their payments.”

The survey’s results were compiled from 1,005 online surveys completed by Canadians between July 12 and 16.