48% Of Canadians On Brink Of Insolvency

[Economy 52,835]

https://www.bnnbloomberg.ca/maxed-out-48-of-canadians-on-brink-of-insolvency-survey-says-1.1247336

 

Nearly half (48%) of Canadians have less than a $200 buffer a month between expenses and income to avoid insolvency

 

The all time high consumer debt of 177% of income and housing crisis that sees rent and mortgage affordability ever deteriorating continues to take it's toll on personal finances. That is 43 percentage points above the US record of 134% before the financial crisis!

 

The government has put in measures to try to maintain financial stability including stress tests for new mortgages and keeping high cash reserve requirements for banks in case of a big wave of defaults

 

Most Canadians cannot sustain even a modest further increase in interest rates

[homomo 23,883]

I'm so glad I left when I did. I'm making triple the income in Europe for basically the same job I was doing back in Canada. It's a lot easier to save money (and fund for my travels, of course) on this side. Especially for someone like me in their early twenties.

[Economy 52,835]

12 minutes ago, Interstellar said:

I'm so glad I left when I did. I'm making triple the income in Europe for basically the same job I was doing back in Canada. It's a lot easier to save money (and fund for my travels, of course) on this side. Especially for someone like me in their early twenties.

What was ur job? Where in Canada were u and where are u now?

 

I think the real issue why Canadian debt is so high is the same reason Australian, Norway and Sweden, Netherlands etc debts are so high too tbh

[baptism 2,670]

Lol at least I'm not alone. Thank God for parents born in a lucrative generation. 

[berlinforme 5,385]

14 hours ago, Economy said:

 

I think the real issue why Canadian debt is so high is the same reason Australian, Norway and Sweden, Netherlands etc debts are so high too tbh

Why is that? 

[Economy 52,835]

16 hours ago, baptism said:

Lol at least I'm not alone. Thank God for parents born in a lucrative generation. 

I think there's other factors too tho

 

Older generations used to spend way less money on themselves. There weren't so many gadget upgrades like phones, outings, entertainment spending etc

 

But housing now a days is a killer tho

[Economy 52,835]

1 hour ago, berlinforme said:

Why is that? 

Canada (Scandinavian Countries as well for example) did not have the same severe banking crisis much of the world did or a severe recession

 

While in much of the world especially US & Europe credit froze and lending reduced, in these Countries banks kept lending

 

Interest rates dropped as a result of the weak global economy so now credit was cheaper than ever to binge on and in these countries where banks didn't fail and consumer confidence didn't fall as much consumers went on a borrowing binge

 

Add to that and low interest rates also contributed to adding fire to expensive housing markets that never got a correction like in the US for example and kept going up

 

Our strength through borrowing in the financial crisis is also part of the reason were in such consumer dire straights now

 

It's not just Canada. Norway, Sweden, Netherlands, Switzerland, Australia and other Countries that kept the credit flowing without issues during the crisis now have enormous consumer debts