Canada’s household debt levels are the highest in the world

[Anonymous]

This worries me more about this country's future than our silly obsession with lowering our paltry 1.6% of global C02 emissions.



Household debt levels in Canada are the highest in the world, making the country more vulnerable to an economic shock, according to a new report.



The warning from the OECD came in a report on economic growth which highlighted concerns over the levels of household debt in both advanced and emerging economies.



Consumer debt tops 100% of GDP in Canada, while the level of debt expressed as a percentage of GDP stands at above 80% in both South Korea and the UK.



High levels of household debt prolonged the 2008 financial crisis, while the house-price bubble was a major contributing factor in the destabilization of the banking sector.

https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/">https://www.weforum.org/agenda/2017/12/ ... the-world/">https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/

[Anonymous]

Although it's not on this graph, South Korea is second to Canada in consumer debt.

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/imm7dHvs4asw/v0/-1x-1.png">

[Anonymous]

And it continues to rise.



Canadians' mountain of household debt is rising again



Household credit market debt to disposable income ticked up to 175.9 per cent in the three months ended September, according to data released Friday by Statistics Canada. That's up from a revised 175.4 per cent in the previous quarter. Debt grew at an annualized pace of 1.2 per cent in the quarter, outstripping a 0.9 per cent gain in incomes.

https://business.financialpost.com/personal-finance/debt/canada-q3-household-debt-to-income-ratio-rises">https://business.financialpost.com/pers ... atio-rises">https://business.financialpost.com/personal-finance/debt/canada-q3-household-debt-to-income-ratio-rises

[Anonymous]

There is no future for the middle class in this country. The rich will continue to do well, and the government will throw some scraps to the really poor. But, if you work for a living in this country, you are screwed. If you can get out of this country, do it. In another fifteen years, progs will have decimated the middle class.

[Anonymous]

This worries me more about this country's future than our silly obsession with lowering our paltry 1.6% of global C02 emissions.



Household debt levels in Canada are the highest in the world, making the country more vulnerable to an economic shock, according to a new report.



The warning from the OECD came in a report on economic growth which highlighted concerns over the levels of household debt in both advanced and emerging economies.



Consumer debt tops 100% of GDP in Canada, while the level of debt expressed as a percentage of GDP stands at above 80% in both South Korea and the UK.



High levels of household debt prolonged the 2008 financial crisis, while the house-price bubble was a major contributing factor in the destabilization of the banking sector.

https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/">https://www.weforum.org/agenda/2017/12/ ... the-world/">https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/

While Canadian's debt levels are too high, this is somewhat skewed. In Canada, the US and the UK, consumer is overwhelmingly a mortgage. Koreans situation is much more serious as most of it is real consumer debt which has no tangible value.

[Anonymous]

This worries me more about this country's future than our silly obsession with lowering our paltry 1.6% of global C02 emissions.



Household debt levels in Canada are the highest in the world, making the country more vulnerable to an economic shock, according to a new report.



The warning from the OECD came in a report on economic growth which highlighted concerns over the levels of household debt in both advanced and emerging economies.



Consumer debt tops 100% of GDP in Canada, while the level of debt expressed as a percentage of GDP stands at above 80% in both South Korea and the UK.



High levels of household debt prolonged the 2008 financial crisis, while the house-price bubble was a major contributing factor in the destabilization of the banking sector.

https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/">https://www.weforum.org/agenda/2017/12/ ... the-world/">https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/

While Canadian's debt levels are too high, this is somewhat skewed. In Canada, the US and the UK, consumer is overwhelmingly a mortgage. Koreans situation is much more serious as most of it is real consumer debt which has no tangible value.

But, there's also a lot of credit card debt.

[Anonymous]

But, there's also a lot of credit card debt.

I am not denying that, as well as student debt and high interest vehicle debt. And don't get me wrong, the higher the debt levels of the population, the greater the risk of recession.



All I'm saying, is Korea's situation is worse because of the type of debt Koreans are carrying.

[Anonymous]

Seoul, look at this.



46% of Canadians $200 or less away from financial insolvency: poll



More than half of respondents say they're feeling the pinch of higher interest rates



The number of Canadians who are $200 or less away from financial insolvency at month-end has jumped to 46 per cent, up from 40 per cent in the previous quarter, as interest rates rise according to a new poll.



A survey conducted for insolvency firm MNP Ltd. in December also found that 31 per cent of Canadians say they don't make enough to cover their bills and debt payments, up seven per cent from the September poll.



The results released Monday also indicated that 51 per cent of respondents say they are feeling the pinch of interest rate increases, up from 45 per cent a quarter ago.



"Many have so little wiggle room that any increase in living costs or interest payments can tip them over the edge," said MNP's president Grant Bazian in a statement. "That's what we are seeing happen right now."



As well, 45 per cent of those surveyed say they will need to go further into debt to pay their living and family expenses.

https://www.cbc.ca/news/canada/calgary/200-financial-insolvency-2019-1.4986586">https://www.cbc.ca/news/canada/calgary/ ... -1.4986586">https://www.cbc.ca/news/canada/calgary/200-financial-insolvency-2019-1.4986586

[Anonymous]

^^It is very serious.



Unlike the US, which has lower consumer debt to GDP levels than Canada to begin with, we have a higher higher overall tax burden which pushes people closer to insolvency. And, on top of that we are making it harder for good jobs to be created which help lift people out of debt/poverty.

[Anonymous]

This worries me more about this country's future than our silly obsession with lowering our paltry 1.6% of global C02 emissions.



Household debt levels in Canada are the highest in the world, making the country more vulnerable to an economic shock, according to a new report.



The warning from the OECD came in a report on economic growth which highlighted concerns over the levels of household debt in both advanced and emerging economies.



Consumer debt tops 100% of GDP in Canada, while the level of debt expressed as a percentage of GDP stands at above 80% in both South Korea and the UK.



High levels of household debt prolonged the 2008 financial crisis, while the house-price bubble was a major contributing factor in the destabilization of the banking sector.

https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/">https://www.weforum.org/agenda/2017/12/ ... the-world/">https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/

Long term, Canada can expect lower growth because of higher taxes and anti resource development insanity. As good jobs continue to leave Canada for more pro development places in the world, people will try to maintain their living standards with debt.

[Anonymous]

This worries me more about this country's future than our silly obsession with lowering our paltry 1.6% of global C02 emissions.



Household debt levels in Canada are the highest in the world, making the country more vulnerable to an economic shock, according to a new report.



The warning from the OECD came in a report on economic growth which highlighted concerns over the levels of household debt in both advanced and emerging economies.



Consumer debt tops 100% of GDP in Canada, while the level of debt expressed as a percentage of GDP stands at above 80% in both South Korea and the UK.



High levels of household debt prolonged the 2008 financial crisis, while the house-price bubble was a major contributing factor in the destabilization of the banking sector.

https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/">https://www.weforum.org/agenda/2017/12/ ... the-world/">https://www.weforum.org/agenda/2017/12/canada-s-household-debt-levels-are-the-highest-in-the-world/

Long term, Canada can expect lower growth because of higher taxes and anti resource development insanity. As good jobs continue to leave Canada for more pro development places in the world, people will try to maintain their living standards with debt.

I wouldn't be surprised if that's what happens.

[Anonymous]

Canadians were already heavily indebted before lock downs and forced mass unemployment.



Count on finances to stress Canadians out



TORONTO — Money is the No. 1 cause of stress for Canadians, and even more so for those under 35, a new study shows.



The pandemic, of course, isn't helping, with four in 10 saying COVID- 19 has ratcheted up their financial stress, according to the 2020 Financial Stress survey by FP Canada, a financial adviser organization.



For one in 10, their financial stress levels had been "significantly" affected by the novel coronavirus.



"This pandemic has added an extra layer of financial uncertainty for Canadians," said Kelley Keehn, a personal finance educator and consumer advocate for FP Canada.



Our bodies are taking a hit from all the stress, too, with 18% saying they have health issues due to money worries and 10% saying financial stress has caused some mental health issues or substance abuse problems. The study also found half of Canadians are losing sleep over financial worries — and women (54%) are more likely to be counting sheep than men (43%).



Marital bliss isn't spared, either, with 15% of those polled saying financial problems have caused relationship problems.



"Relationships and work are deeply interconnected," said Dr. Moira Somers, a clinical neuropsychologist who specializes in mental and financial well-being.



"Stress in any one of those domains can compound problems in the others. The COVID-19 pandemic has increased financial strain in many households — especially for those who have lost their job in a sector that may not fully recover," Somers said.



Age matters, the study found, as older Canadians seem less stressed about money — 44% of 18-to-34year-olds cited money as their main concern, compared with 25% of people 65 and older.



On the bright side, four in 10 Canadians say financial stress doesn't affect their lives at all.

[Anonymous]

Canada is so screwed.

[Anonymous]

This is a surprise.



Students repaying loans at historic rate: Report



The odds on paying back money from the 56-yearold Canada Student Loans Program are the best they've been.



The Employment Department, which runs the program, said in a report to the Senate national finance committee that only 9% of borrowers default on their payments, according to Blacklock's Reporter.



Staff said those numbers represented the best performance yet in the history of the program, which began in 1964.



In 2004, loan defaults averaged 28%.



The report said the reason that defaults have declined is the new Repayment Assistance Plan, which waived payments for unemployed students, while borrowers were offered more grants. Millions forgiven



About $391.4 million in loans were forgiven last year by the program for reasons ranging from hardship to death, while another $184.9 million were written off as uncollectable.



In a 2016 report, Canada's chief actuary estimated total writeoffs cost taxpayers at least $2.7 billion.



It's estimated 39% of postsecondary students in the country have Canada student loans.



Auditor General Karen Hogan said in a July 8 report that Student Financial Assistance advised managers to report deadbeat borrowers to credit bureaus to improve collections.



"The department did not take enough steps to ensure borrowers understood their financial obligations" wrote Hogan.



Changes have been promised by the department by 2022.