Canadians are Piling up More Debt

Apparently Canadians are piling up more debt even though delinquency rates and bankruptcies are down in most provinces (except the Prairies). A recent BNN article points out that consumer debt levels including credit cards, mortgages and car loans continue to rise.

According to the article….”Canadians carried an average of $21,132 in non-mortgage debt in the third quarter, up 2 per cent from the previous year, Equifax found. Car loans jumped 8 per cent on a rebounding auto sector. Hot housing markets in Ontario and B.C. have pushed up mortgage debt by nearly 6 per cent from the third quarter of last year. Installment loans, which could include loans used to buy vehicles, rose 5 per cent.”

Clearly, a recession now would not be a good thing for many consumers. In the meantime, many individuals are turning to consumer proposals rather than bankruptcies to manage their debt problems since they still may have a steady income to use to make payments to their creditors under a plan of compromise.