Canadians tell their debt stories of "gain and pain"

 A majority of Canadians who are in debt say they believe it will have a positive future impact on their life, according to a research by Investors Group released on Wednesday.

Of the 75 percent of Canadians who say they are in debt, more than half (about 54 percent) point to purchasing property as the main reason. Another 37 percent have used debt to invest in home renovations.

However, nearly one in four (about 28 percent) have gone into debt to make a financial investment and 18 percent have taken on debt to invest in themselves for skills upgrading or going back to school.

But there's also a far less positive side to the Canadian personal debt picture.

While being in debt may be the new 'norm,' 58 percent of Canadians with debt feel uncomfortable even though they acknowledge they can live with it.

Thirty percent are outright embarrassed by it. One in three Canadians with debt (about 33 percent) admit to losing sleep over their debt load and 25 percent say debt talk has triggered disagreements with their partners.

"The reality is that almost everyone has consumer debt," said assistant vice president Jack Courtney, Advanced Financial Planning of Investors Group. "But accumulating debt with purpose and putting thought into how debt will be repaid is very different than spending beyond one's means and without foresight."

The majority of Canadians with debt (about 73 percent) say they have some idea about how they will pay what they owe. When asked for details, thirty-five percent said they simply plan to curb their spending.

One in four Canadians with debt (27 percent) are considering more drastic steps. Fourteen percent are considering delaying retirement and working to pay down their debt, while 13 percent plan to make more money by working at more than one job.

Paying off consumer debt such as credit cards is the greatest priority for 57 percent of Canadians with debt. Paying off their mortgage is the primary objective for 25 percent, while 18 percent are focused on paying off personal loans.

When it comes to making a major purchase, most Canadians say they either pay entirely in cash (33 percent) or as much as they can in cash (41 percent). Another 13 percent check their monthly budget to ensure they can cover the minimum payment required, but a similar number (13 percent) say they just make the purchase without worrying about how they will pay for it.

"While debt financing can be helpful in purchasing a home or funding education, debt can also have very negative impacts on Canadians' ability to save and invest," Courtney said, adding that a financial advisor can help develop a long-term financial plan that includes managing, reducing and ultimately eliminating personal debt.

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