Believe it or not Canadians are now more in debt than Americans! Read on!
Smartphones, flat-screens, home renovations and other such high priced purchases are all leading to bank loans, credit cards and lines of credit.
According to a fresh 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.
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 U.S. experience has highlighted the risks of overextended consumers and C.D. Howe says maybe Canadians need to curb their enthusiasm over paying with plastic.
Wow..scary…how’s your financial situation looking? Are you getting nervous?