Scotiabank Borrowing Poll finds:

• Fifty-six per cent of Canadians do not carry credit card balance and 40 per cent do not carry a line of credit balance
• Canadians who carry a balance have an average outstanding balance of $6,938 on their credit card and $28,753 on their line of credit
• Canadians knowledgeable about lending products

TORONTO, June 29, 2011 /CNW/ - Scotiabank today released the results of a recent poll looking at consumer debt levels and practices, and how Canadians are feeling about their debt.

The study was conducted by Harris/Decima and assessed the borrowing habits of Canadians. More than half of Canadians (56 per cent) feel their level of debt is manageable and an additional 27 per cent do not have any debt. A smaller number of Canadians (17 per cent) reported feeling overwhelmed by their debt, and many of these people carry a credit card or line of credit balance.

"We know that a majority of Canadians are interested in having a plan that looks at their overall financial health and helps them make the most of their money," said Mike Henry, Senior Vice-President of Retail Payments, Deposits, and Lending at Scotiabank. "Whether it's renovating their home, funding a child's education, or planning for retirement, having a financial plan with a manageable borrowing strategy will help Canadians plan for and manage the role that debt plays in reaching their life and financial goals."

Many Canadians do not currently have an outstanding balance on their credit card or on their line of credit (56 per cent and 40 per cent respectively). In fact, four-in-ten (41 per cent) respondents never carry a balance on their credit card and one-third (31 per cent) never carry a balance on their line of credit. An additional one-in-five only use their credit card or line of credit (18 per cent and 22 per cent respectively) in the case of an emergency.

Other findings indicate that more than one-third of Canadians (36 per cent) currently have an outstanding balance on their credit card and an almost equal number (32 per cent) are in the same position with their line of credit. These individuals currently have an average outstanding balance of $6,938 on their credit card and $28,753 on their line of credit.

"Our research also tells us that while there is a desire among Canadians to become debt free, 40 per cent of Canadians do not have a plan to manage their borrowing needs," said Mr. Henry. "We encourage Canadians to talk to our employees in branches across the country so that we can put our planning expertise to work and help them create manageable and sustainable financial plans that meet their individual needs."

Canadians are also quite knowledgeable about the differences between a credit card and a line of credit, with the majority knowing that both can be paid back at any time (62 per cent), that a credit card often offers loyalty rewards (88 per cent) and that a line of credit usually has a lower interest rate (81 per cent) and higher credit limit (57 per cent).

"Having a solid understanding of the differences between a credit card and a line of credit helps people use each tool wisely so these results are very encouraging," said Mr. Henry. "Credit cards and lines of credit serve a different purpose and as with any financial tool, we want to make sure that our customers are using the right product for their needs."

For more information on borrowing to get ahead, visit: www.letthesavingbegin.com.

About the poll

The Scotiabank Borrowing Poll was conducted online using Harris/Decima's online panel. A total of 1,003 Canadians were surveyed from March 11th, 2011 to March 21st, 2011. Surveys were conducted among a random sample of panel members across Canada.

This was a standard panel survey among a random sample of Harris/Decima's Canadian panel members. In a fashion similar to a telephone study, email addresses from Harris/Decima's panel were pulled at random, according to population and gender specifications, in order to make the study representative of the Canadian population by region and gender. When contacted to solicit participation, participants had no prior knowledge of the subject matter of the study. Harris/Decima controls access to the study through passwords to ensure that respondents can participate only once. Subsequent to completion of the study, the data was weighted by region, age, and gender.

About Scotiabank

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 70,000 employees, Scotiabank Group and its affiliates serve some 18.6 million customers in more than 50 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets above $571 billion (as at April 30, 2011), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.