Canadians now more in debt than Americans
Posted April 4, 2012 7:50 pm.
This article is more than 5 years old.
TORONTO, ON. (NEWS1130) – Believe it or not, Canadians are now more in debt than Americans.
According to a new report released by the C.D. Howe Institute, consumer debt levels in Canada are higher than at any point in recent history . Consumer credit accounts for roughly 45 per cent of total household interest payments.
Smartphones, flat-screens, home renovations and other such high-priced purchases are all contributing to bank loans, credit cards and lines of credit.
The rapid expansion of new consumer credit products, such as home equity lines of credit, raise real concerns about whether lenders and borrowers have been overly optimistic.
Canadians are now vulnerable to rate shock.
The recent US experience has highlighted the risks of over-extended consumers and the report says maybe Canadians need to curb their enthusiasm over paying with plastic.
