Some basic tips: “Don’t add any more to your debt,” Mr. Schwartz said, “Put your credit cards away. Stop using your line of credit. Live on cash or debit.”

Canadian borrowing levels have hit record levels, with household debt-to-income ratio recently reaching a high of 164.6 per cent, according to Statistics Canada.

But consulting a trustee, which comes with no charge, doesn’t always mean filing for bankruptcy, he explained. Trustees can help set budgets, steer consumers toward consolidation loans, mortgage refinancing or consumer proposals as a way to climb out of debt, he said.

But the real problem is that the global economy is badly overleveraged, and there is no quick escape without a scheme to transfer wealth from creditors to debtors, either through defaults, financial repression, or inflation.

but to debt and credit, and the deleveraging that typically takes many years to complete.

Many commentators have argued that fiscal stimulus has largely failed not because it was misguided, but because it was not large enough

In 1980, the ratio of household debt to personal disposable income was 66%; that ratio recently passed the 150% figure (Statistics Canada 2011). This means that, in aggregate, households owed more than $1.50 for every dollar of disposable income.

It also examines whether the relationships between debt and financial capability persist when other characteristics like income and educational attainment are taken into account.

younger people and parents with children at home were more likely to hold debt. Individuals under 45 made up 45% of the population, but 54% of borrowers. Similarly, married people with children accounted for 30% of the overall population, but 39% of debtors. They were also more likely to have higher levels of debt. Couples with children held one-half of all household debt, with an average debt of $144,600, higher than the overall average of $114,400. Similarly, individuals under 45 held 61% of household debt, $129,200 on average.

With Canadians so deep in debt, it would be extremely difficult for domestic spending to pick up slack in the economy if things started to go downhill. That could result in a serious downward spiral in employment levels, household spending and the quantity and quality of credit outstanding, the report says.

"Households are spending money they assumed would be coming, then they realize they've run over the cliff because income from exports from these trading partners is not materializing and that's translating to weaker jobs.

domestic consumption is usually the more steady contributor to economic growth compared to exports and investment. But this time, household debt is out of control.

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.

“Given the prospects that interest rates will eventually rise, households must cool their spending and borrowing further.”

Canadian families owe nearly $1.65 on average for every dollar of after-tax income, the highest level in 22 years of tracking those figures.

the government would no longer insure mortgages that are amortized over a period longer than 25 years.

fierce competition for customers caused some major banks to begin offering five-year mortgages at 2.99 per cent, triggering a price war in the sector.

A fault line is splintering Canada’s labour market into those who can’t find work and those who can’t find workers.

employers across the country say they can’t find the right workers for all kinds of available jobs.

Groups with high jobless rates such as aboriginal people, recent immigrants and those with disabilities are struggling to land good jobs, limiting their ability to climb the economic ladder.

Information technology has eliminated some middle-skill jobs, such as filing and administration, while globalization has seen high-paid manufacturing jobs outsourced to lower-paid countries, Alexander said.

globalization has weakened the lowest earners’ bargaining power as their jobs are outsourced to cheaper countries,

The gap has likely widened since the recession in 2008 as more companies moved high-paid manufacturing jobs offshore to countries with lower wage rates, the economists also noted.

Income inequality in Canada is at a 30-year high, rising at a faster pace than in the U.S.

The group urges the government to tackle this situation with wide-ranging reforms to the tax system.

to address poverty through improved education, pension, affordable housing and pharmacare programs. It also urges Ottawa to adopt a national child care plan.

The income gap between rich and poor in Canada widened in the period from 1993 to 2009

The average income of the poorest Canadians rose from $12,400 in 1976 to $14,500 in 2009.

the gap between the real average income of the richest 20 per cent of Canadians and the poorest 20 per cent widened from $92,300 in 1976 to $117,500 in 2009.

boosting speculation that the conflict between Israel and the Palestinians of Gaza may disrupt crude supply from the Middle East.

Prices advanced earlier after American Petroleum Institute data yesterday showed crude inventories fell for the second week in three. An Energy Department report today is forecast to show supplies increased.

“Crude trade will remain choppy until we have some clarity on the Israeli-Gaza conflict,

Baby boomers are targeted because after struggling to get an education in skills that would land a job, and after decades of effort, they have accumulated some wealth.

To them, we symbolize intergenerational inequality.

Your future will be defined by how well you learn skills that match the needs of the job market. Those who gain useful skills will find higher paying, more rewarding jobs; those without that knowledge will face low-paying, unstable prospects.