Live Small and Prosper: Household debt in Canada reaches all-time high

For a few fortunate, individual North Americans, the mention of household debt only brings a smile, because their mortgage is paid off and they owe a total of 14 bucks to a credit card company.

That’s not you? Not me as well.

In January I posted four entries (‘I am in debt but I think it’s manageable’) related to financial concerns that many face, including information about the triple whammy, i.e., the growing prevalence of low cash, high debt, few savings.

Well, after hearing a short piece on CBC radio this morning I felt I should update one piece of information I shared related to debt-to-income ratios.

I wrote earlier that per capita household debt in Canada was growing, and though not as high as in England or the US, sat at 140 (debt) to 100 (income).

In other words, per capita we carried debt that was 40 per cent higher than our income.

According to a very recent report, our debt has risen and households now owe 145 dollars for every 100 earned. Ouch.

But that’s not the worst news to this Canadian.


["Saving money = the new cool"]

I also read recently that people in the US are now saving more than us for the first time in years.

What the heck? Our debt is rising and we’re not saving money as we once did?

What’s happening out there, people? Settle down.

***

Though I have debt, I think it’s manageable (and it’s definitely going in the right direction), but I’ll still feel better when I owe Mr. Lina Credit a mere 14 bucks.

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