Canadians in More Debt
Tags: canadian households, canadians, consumer credit, debt levels, debt loads, Economy, home purchases, household debt, low interest rates, mortgages, net worth, recession, statistics canada
A report from Statistics Canada shows Canadians are deeper in debt that even before, however with record low interest rates it means that debt loads are still manageable and likely to improve as the economy begins to improve from the recession.
Household net worth has reached $5.72 trillion at the end of September, making this an increase of 2.3%, marking two quarter gains after 3 consecutive drops.
Household debt, which is primarily mortgages and consumer credit has rise from July to September as Canadians have rushed to take advantage of low interest rates.
With that said, although debt has risen, with the increase in home purchases debt has risen, however remember that everything is manageable due to the fact that we have low interest rates.
However, right now the central bank making a pledge to keep the interest rate at 0.25% until June 2010, we can rest at ease not worrying about any sudden increases.
Just remember that as debt levels rise, it will make Canadian households more vulnerable when interest rates do go up.
With that in mind, you should prepare for the moment interest rates to go up, and with a bit of preparation you will be able to ease the pressure.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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