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It's official. The average Canadian is now in debt a total of $41,740 according to the most recent report issued by the Certified General Accountants Association of Canada. They have shown that Canadians' household debt load kept rising through the recession and peaked in December at $1.41 trillion making the debt to income ratio 144 per cent. That makes Canadians the worst among the 20 advanced countries in the OECD.This is an indication of Canada's obvious willingness to 'buy now and pay later' according to the association. Neither rising joblessness, the recession, nor global uncertainty have had an effect on the spending habits of Canadians and many are spending money they simply don't have.The accountants survey also found that almost 60 percent of Canadians whose debt has increased were still confident they could manage their existing financial obligations or take on more. However, the Bank of Canada is warning Canadians to be careful and to make certain they will be able to make their mortgage payments once the rate increases take effect. Even though Ottawa has put into place a few cautionary measures when it comes to people applying for open-ended mortgages, the Bank of...more
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