Author Topic: Canadians Hit New Record Debt Levels : Average Consumer Debt = $21,428  (Read 3988 times)

Kaspian

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We're really just copying what we saw Americans do around...  2007?  We always do that.  ;)

Quote
Wang has a theory on why debt levels are starting to crest in Alberta: “People are starting to brace for a somewhat worse economic outlook. That just shows that consumers are being more prudent than ever.”

"More prudent than ever"?!  In a city where people owe $24,651?  Holy crapola!   And this figure is just an average--it means many, many people owe more than that.  And there are guys like me with zero, dragging the number down.

I'd like to think it's all pretty funny, but I don't.  Makes me sick to my stomach and keeps me up at night when I think what people are out there doing and getting themselves into.  When the house of cards falls down they'll blame the government, the banks, and the 1% of their own complete insanity.    The mad outcry will certainly push politicians into slapping savers through lower interest rates and higher taxes on gains.  ...Ersh.

http://www.moneysense.ca/debt/canadians-fall-deeper-into-debt

Thankfully, nobody can blame the Millennials for this one either--numbers show it has very little to do with them.  Rather a big chunk of it is my Generation X--which was supposed to be all antimaterialistic 'cause we listened to the Sex Pistols, the Ramones, the Clash, Nirvana, and REM.  And now suddenly everyone thinks they're fancy people?

So--$21.5K.  Fuuuuu...   No wonder people look at me like I have three heads when I say I owe nothing.  And critics out there like to say Mustcahianism could cause an economic collapse.  (My ass it will!)  :(

Luck12

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What's the median?  :) 

dycker1978

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I will just say the same thing my mom has said for years and years.  This is not sustainable.  People need to stop spending more than they make.  The economy cannot withstand this transfer of fake money around for ever.  When this house of card falls, it will be a hard time for people.  I am just glad that I have turned my finical ship around and have improved in this area greatly.

Eventually the CC companies, will stop lending money, and this will fall hard!

Kaspian

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What's the median?  :)

I wish they'd show that!  For some reason media gets stuck on the word "average" because maybe the average doesn't understand what median means?

I will just say the same thing my mom has said for years and years.  This is not sustainable.  People need to stop spending more than they make.  The economy cannot withstand this transfer of fake money around for ever.  When this house of card falls, it will be a hard time for people.  I am just glad that I have turned my finical ship around and have improved in this area greatly.

Eventually the CC companies, will stop lending money, and this will fall hard!

I agree with everything you said!  Everything!!  Whenever people slow down borrowing or buying houses, they lower rates or offer even more credit to reel them back in.  That's almost exactly how a Ponzi scheme works.  You keep signing people up until there's no one left, then it falls all apart.  I try to laugh but it scares the living shit out of me. Canada has just begun selling "subprime" mortgages.   I couldn't believe when I first heard that word on TV last month in relation to us buying homes.   What in the name of fuck?  :(
« Last Edit: March 25, 2015, 02:12:59 PM by Kaspian »

Abe

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That is just credit card debt or does it include cars? I know it doesn't excuse the findings, but it's probably one thing to have a car loan vs credit card debt since the rates are usually lower (at least in US). I can't even get my head around that level of debt! They mention multiple factors, but didn't explain what the multiple factors are, typical of the superficial articles written these days.

daverobev

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http://www.cbc.ca/news/business/albertans-and-their-debt-hangover-1.3001849

Do remember this does include people who borrow to invest.

Yes, it includes all non-mortgage debt, I believe.

Sort've scary. Less so if most of it is auto financing with a fixed (low) rate.

IIRC, credit card debt is actually pretty low.

Indexer

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Consumer debt includes basically everything EXCEPT mortgages. 

So car loans + credit cards +  student loans + payday loans, etc.

Just a student loan or car loan could equal 20k. 

I am actually (barely) included in this because of a student loan.  Now my student loan interest is less than 3% after tax deductions so I just make the minimum payment and invest all my monthly surplus in ETFs.  If I put everything towards the loan it would be paid off in less than a year, but I figure I can earn more than 3%. ;)
 
« Last Edit: March 25, 2015, 06:26:55 PM by Indexer »

queenie

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We are still at this level :( but down from the $60k range a couple of years ago.  God we've been so stupid.

I really want to teach our kids to be smart, live frugally and save.

Financial.Velociraptor

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We are still at this level :( but down from the $60k range a couple of years ago.  God we've been so stupid.

I really want to teach our kids to be smart, live frugally and save.

Gogogogogogogo!  Forty k extinguished is a major accomplishment.  On to FI!

queenie

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Oh, we're going!

Kaspian

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Re: Canadians Hit New Record Debt Levels : Average Consumer Debt = $21,428
« Reply #10 on: March 26, 2015, 10:09:02 AM »
Yeah, there is often an argument that goes something like, "Well, it includes student loans and cars and peoples' net worths are up," like this is some sort of normal excuse to be (probably now) the most debt-ridden country.  "Household debt ratio hits new record of 163.3%"?    You owe a $1.63 for every buck you make?  It's crazy talk.


We are still at this level :( but down from the $60k range a couple of years ago.  God we've been so stupid.

I really want to teach our kids to be smart, live frugally and save.

Very good!!!  Keep it up!  :)


Cookie78

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Re: Canadians Hit New Record Debt Levels : Average Consumer Debt = $21,428
« Reply #11 on: March 26, 2015, 11:26:04 AM »
Yeah, there is often an argument that goes something like, "Well, it includes student loans and cars and peoples' net worths are up," like this is some sort of normal excuse to be (probably now) the most debt-ridden country.  "Household debt ratio hits new record of 163.3%"?    You owe a $1.63 for every buck you make?  It's crazy talk.

I just calculated mine. Roughly 769% including mortgages. 0% not including mortgages. I don't feel like this number is very meaningful.