Group items tagged

1. Despite receiving warnings about Canadian debt issues , it turns out that the average credit card debt has actually decreased by one percent while the year-over-year auto loans are now the main driving force behind the overall growth of our debt, why do you think this is happening? 2. Thomas Higgins, TransUnion's vice-president of analytics and decision services said that he believes the reason why consumers continue to ramp up debt is due to the media spreading overly positive news regarding the economy and throwing the readers into a state false optimism. Do you believe this is the case and why?

Some ways to deal with debt are limiting yourself, thinking before spending (do I really this?), using cash instead of credit cards and getting educated about finance to minimize debt when it has to be paid.

For every dollar of after-tax income Canadians bring home, they're borrowing more than $1.64. Statistics Canada said that between July and September of this year, households borrowed $27.3 billion Consumer credit levels increased by $7 billion to $474 billion.

For every dollar of after-tax income Canadians bring home, they're borrowing more than $1.64. Statistics Canada said that between July and September of this year, households borrowed $27.3 billion Consumer credit levels increased by $7 billion to $474 billion.

Credit reporting agency TransUnion's latest quarterly analysis of Canadian credit trends found average consumer non-mortgage debt jumped 4.6% year-over-year in the third quarter to an average of $26,768.

Canadian government article advising consumers about debt, such as recognizing danger signs, various methods to deal with it, and information on declaring bankruptcy in case consumers are unable to pay off their debts.

Pay down the debt with the biggest interest rate first

In 2011, 77,993 consumers filed for bankruptcy

Credit cards: Johnson suggests getting a credit card that gives you cash back rather than points, saying the money is more useful. The Penniless Parenting blog says spendthrifts should use cash as much as possible and recommends carrying around a $50 or a $100 bill. See how long that bill can last without being broken.

The new report shows household debt to annual disposable income reached a new high at 164.6%, from 163.3% the previous quarter. In the July-September period, households borrowed $27.3-billion, $18.4-billion of that in mortgages, while consumer credit levels increased by $7-billion to $474-billion. As well, household net worth rose 1% to $197,800 in the July-September period, mostly due to gains in holdings in stocks, including mutual funds, and increased value of pension assets.

On a national accounting level, Canada's net worth increased by more than $9-billion in the third quarter to $6.8-trillion. That translates to $194,100 per person.

Canadians are taking on more debt than ever before, approaching US debt levels just prior to the housing market crash.

Should Canadians be worried about the financial stability of our banks?

Questions 1. What effects will interest rate cuts and expanding consumer credit have on Brazil's economy? 2. Would allowing the private sector to build and operate airports, highways and cutting electricity costs be good for Brazil's economy? Why?

1- It might cause an economic recession. 2- It will be beneficial as long as there isn't one company operating all these areas(monopoly power) which leads to a market failure. It will bring money to the private sector. Netan

Canadian debt loads grew at their fastest pace in two years during the summer

Non-mortgage debt jumped 4.6 per cent

Household market debt has risen to 163% of disposable income

The article talks about strategies on how to save for things like education, on saving for a car, how to pay off your debt at lower rates as well. 

Canadian debt/income ratio isn't as bad as it looks. Because Canadians pay for their health care through their taxes, their disposable income is distorted relative to the U.S. In terms of personal income, the ratio is actually closer to 118%, rather the scary 165%. Canadian household debt relative to assets (19%) and net worth (24%) is below prior peaks of 20% and 25%, respectively. Rosenberg estimates Canada would need to see a 20% drop in the housing market to get net worth/income ratio down to the U.S. level. Canadians have more equity in their homes - 69% of the value compared with 43% in the U.S. "This equity gap is a prime reason why Canadian household net worth/income ratio (at over 500%) is some 35 percentage points above U.S. levels," Rosenberg writes. Canadians are better able to service their debts. Canadian wage growth at 4% a year is about double what it is in the U.S. - a rise that pretty much matches the average interest rate they are paying. The debt-servicing ratio in Canadian households is now just over 7% - a level it has only been below in the past 15% of the time. So even though Canadian interest rates are 75 basis points higher than in U.S, it is not hampering our ability to handle debt.

From 84% in 1990 to 164.6% today - it's an alarming leap, a dramatic number that may actually have scared some of us into doing something about our debt load. Someone with a $300,000 mortgage and after-tax household income of $100,000, for example, really shouldn't be in a full-fledged panic because they have a debt-to-income ratio of 300%. That's a normal scenario in today's market and not cause for alarm by itself. Still more relevant to consider might be your debt servicing costs and then what they would be if interest rates went up two percentage points. On average, Canadian households pay about 7.6% of their after-tax income on interest payments. That number was 8.8% in 2000 and consumers were able to handle the load, says Mr. Tal