There is a wide variety of attitudes about debt management and one thing is certain — when it comes to debt, age matters. It’s also evident that “debt” means different things to different people.
Manulife Bank’s latest Homeowner Debt Survey reveals a perfect example of how different generations categorize their mortgage compared to debt:
- 68% of homeowners in their 20’s don’t consider their mortgage as debt
- 60% of homeowners in their 30’s don’t consider their mortgage as debt
- 48% of homeowners in their 40’s don’t consider their mortgage as debt
- 29% of homeowners in their 50’s don’t consider their mortgage as debt
(This finding suggests a shift in financial focus since younger homeowners are more likely to carry higher-interest consumer debt.)
- 79% of homeowners say debt freedom is a top financial priority
- 39% of homeowners feel they’re more comfortable with debt than their parents were
- Not everybody has the same definition of what it means to be “debt-free”
- Parents have big influence on debt management
Although homeowners of all ages share a strong desire to become debt-free, the process of getting there isn’t always clear. If you’re not confident that you’ll be debt-free by retirement, rest assured that there are simple, time-tested debt-management strategies that you can implement right away.
Discussing personal debt is uncomfortable but the alternative can be unbearable. Seek out a trusted financial planner, and ask about your options for a customized plan that includes integrating your mortgage, debt, and savings into a single banking vehicle.
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