Canadians debt load

[Topaz]

The financial crunch is looking like is hitting Canadians, just like it has the American families. Canadians families are carrying to much debt in loans, credit cards, and mortgage. http://ca.news.yahoo.com/s/capress/090526/business/debt

[Smallc]

But, most Canadians feel they can mange the debt. After the current problems, the debt problem should subside a bit.

[bush_cheney2004]

But, most Canadians feel they can mange the debt....

So did the Americans......

[geoffrey]

Ya, this is a disaster waiting to happen up here and down South. We haven't nearly seen the tip of the iceberg on this yet. More and more are unemployed everyday and more of these high risk products are going to default. You can manipulate rules all you want, the reality is that these loans are just trash and will never be repaid. Surveys indicating 1 in 10 Canadians can't afford a $500 emergency is a serious problem.

[Smallc]

So did the Americans......

The difference is, more Canadians seem to be able to handle the debt. As was stated on CBC recently, most Canadians never carry a credit card balance. If my memory serves, that isn't true in the US.

[Moonbox]

The difference is, more Canadians seem to be able to handle the debt. As was stated on CBC recently, most Canadians never carry a credit card balance. If my memory serves, that isn't true in the US.

What 'most' Canadians, do unfortunately, is not indicative of the rate of default on loans and credit cards.

It's not uncommon to find people with $40,000 annual incomes but $30,000 in credit card debt. Most people aren't that dumb/desperate, but that doesn't matter. Just watch the Banks quarterly reports as they come out over the next little while. Loan loss provisions will be skyrocketing and it's going to get a lot worse before it gets better simply because people are able to live off their credit cards while unemployed for months and months before it finally hits the fan.

Thankfully we'll not be in as bad a situation as the Americans because of CMHC guidelines on mortgages and stricter capitalization requirements, but believe me it's not a great time to be working for a bank right now.

[madmax]

Ya, this is a disaster waiting to happen up here and down South. We haven't nearly seen the tip of the iceberg on this yet. More and more are unemployed everyday and more of these high risk products are going to default. You can manipulate rules all you want, the reality is that these loans are just trash and will never be repaid. Surveys indicating 1 in 10 Canadians can't afford a $500 emergency is a serious problem.

Geoffrey..... You are scarying the hell out of me.

[Moonbox]

You should see what some of the academic economists are saying. Ignore the government and business economists, take out the vested interest in the predictions, and you'll find some REALLY gloomy predictions.