Category: Debt

Consumers worried? Really?

  Nearly 60 per cent of Canadians have changed their behaviour by doing things such as cutting back on spending on both extras and essentials to brace themselves for rising interest rates, a new survey from Manulife Bank suggests. Among those who have taken steps to prepare for higher rates, 27 per cent pared back…

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Debt Trap!

The day of reckoning for over indebted Canadians does not appear to be coming soon, but a new survey indicates a rising proportion of Canadians fear the fallout from higher interest rates. Thirty-three per cent of respondents to a survey conducted on behalf of MNP said they could be pushed toward bankruptcy due to rising…

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Global Gluttony Continues

Taking on debt in basic terms simply means stealing from our future income in order to purchase or consume something today. If we do enough of it what will be left of our future income in order to purchase or consume in the future?  Is there not an inevitable wall that will be hit?  Will…

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Uuuum…Alberta We Have a Problem….

According to a recent by RBC report focusing on Canada’s Household Debt Albertans would be hardest hit by further interest rate hikes.   Mortgage debt in Alberta rose almost 30 per cent on average from 2010 to 2016. Households in Alberta will feel the most pressure from rising interest rates because residents in the province carry…

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Canadian Debt Dogpile

Our Federal government recently admitted that they will never eliminate the deficit. In fact, Finance Canada now projects deficits for another 25 years, totaling almost a half-a-trillion-dollars! The fiscal victory being claimed by the federal government however is that the debt will grow ‘slower’ than the economy’ – lowering the debt-to-GDP ratio with program spending…

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The 1.8 Trillion Dollar Millstone

Canadians’ collective household debt has climbed to $1.8 trillion as the Bank of International Settlements (BIS) sounded an early warning that the country’s banking system is at risk from rising debt levels. China, Canada and Hong Kong are among the economies deemed most at risk of a banking crisis.  Yes, you read that right.  Not…

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Time almost up at the all-you-can-eat buffet?

Canada’s current debt binge has some sounding the alarm on rate hikes. According to Macquarie Capital the unprecedented rise in consumer debt means the Bank of Canada’s (BoC) rate-hiking cycle is already the most severe in 20 years and further increases will have far graver consequences than conventional analysis shows. Assuming just one further rate…

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Worry = Higher Interest Rates + Covering Monthly Bills

According to a recent Ipsos poll conducted by MNP LTD., Canadians are increasingly worried about their ability to repay their debts. Since interest rates first rose in July, households across the country have noticed their budgets tightening as they struggle to keep up with expenses and manage other rising costs. Jumping eight percent since September,…

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Thinking wisely and acting foolishly

A new CIBC survey shows a quarter of Canadians say paying down debt is their top personal finance priority for 2018 as has been for the previous seven years. And we know how well that’s been working out for households in this country. So is there any reason to believe next year will be different?…

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Richer but More Indebted; The New Reality

According to a report released December 7, 2017 by Statistics Canada median family net worth was $295,100.00 up 14.7% from 2012 and more than double from 1999. The Survey of Financial Security marks the first time since 2012 that the data agency has taken an exhaustive look at the financial lives of Canadians.  A person…

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