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Consumer Debt in Canada Reaches Record Levels

While consumers in America have been reducing the amount of consumer debt they are carrying, Canadians have been loading up on new debt.

A reader and tipster (send in your tips here) just sent me an article that shows overall Canadian household debt is at $1.5 trillion and it states people earning under $50,000 often have to borrow just to be able to afford daily expenses.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

The Certified General Accountants Association of Canada study found if household debt was spread evenly among all Canadians, a family with two children would owe an estimated $176,461.

The survey also found more Canadians carrying debt into retirement, with one-third of retired households carrying a debt of $60,000 and 17 per cent in debt $100,000 or more.

Canadians were saving as much as 18 per cent of their disposable income about 30 years ago, while Canadians saved just more than 4.5 per cent last year.

Fifty-seven per cent of indebted respondents said daily living expenses are the main cause of their increasing debt.

The debt-to-income ratio in households reached a record high of 146.9 per cent in the first quarter of 2011, compared to 144 per cent in late 2009.

Twenty-seven per cent of non-retired Canadians are not saving, even for retirement. – Source


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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