Vegas
02-11-2008, 07:48 PM
http://www.edmontonsun.com/News/Canada/2008/02/11/4840195.html
OTTAWA — It’s a perfect financial storm of flat earnings, increased spending and plummeting savings.
A new report by the Vanier Institute of the Family says Canadians are buried in record debt averaging $80,000 per household.
Author Roger Sauve says total debt is now 131% of household income after income tax and benefits — up from 91% in 1990.
Many Canadians have borrowed cash at lower interest rates to buy more expensive homes.
But credit-card debt has almost doubled since 1990 to $22,500 from $12,000.
Bankruptcies and proposals that allow partial debt repayment soared to more than 100,000 last year from 43,000 in 1990.
Sauve says another recession would be disastrous for many Canadians teetering on the financial edge.
OTTAWA — It’s a perfect financial storm of flat earnings, increased spending and plummeting savings.
A new report by the Vanier Institute of the Family says Canadians are buried in record debt averaging $80,000 per household.
Author Roger Sauve says total debt is now 131% of household income after income tax and benefits — up from 91% in 1990.
Many Canadians have borrowed cash at lower interest rates to buy more expensive homes.
But credit-card debt has almost doubled since 1990 to $22,500 from $12,000.
Bankruptcies and proposals that allow partial debt repayment soared to more than 100,000 last year from 43,000 in 1990.
Sauve says another recession would be disastrous for many Canadians teetering on the financial edge.