Canadian Press reports:
'A
new report by the Certified General Accountants Association of Canada
shows household debt in the country kept rising through the recession
and peaked in December at $1.41 trillion. That's $41,740 on average per Canadian, or debt-to-income ratio of
144 per cent -- the worst among 20 advanced countries in the
Organization for Economic Co-Operation and Development. But the survey also found almost 60 per cent of Canadians whose debt
rose still felt they could manage it or take on more obligations. The accountants, however, say many households could find themselves
in difficulty when interest rates, as expected, begin to rise. The report estimates even a 2 per cent increase in rates would mean
mid-income and higher-income households would have to slash spending on
non-essentials by between 9 and 11 per cent, resulting in a slowing of
economic growth. Most analysts believe rates will go up by a quarter point on July 1.' What do you think? Is your personal debt situation getting better, worse or staying the same?
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