Canadians taking on record levels of debt

[marmar]

via the Toronto Star:



Canadians taking on record levels of debt
Julian Beltrame THE CANADIAN PRESS

Published On Thu Dec 10 2009


OTTAWA – Canadians are putting themselves and the financial system at a risk by taking on too much debt, the Bank of Canada warns, even as signs point to an economy on the mend.

The central bank expressed the worry – not for the first time – in its semi-annual financial sector review Thursday, stressing that Canadians continue to take on record-high levels of debt.

It says the amount of debt Canadians have taken on is now 142 per cent more than income, a record high.

Speaking to reporters, Finance Minister Jim Flaherty agreed that record-low interest rates have lured Canadians into the housing market and left them vulnerable to a change of fortune.

"We certainly want people to be careful and there's lots of money being lent, and I do ask Canadians to be mindful of the fact that interest rates will not be low indefinitely," he warned.

The fear is that with Canadians continuing to snap up houses, they won't be able to afford to pay their mortgages once rates increase. ...........(more)

The complete piece is at: http://www.thestar.com/news/canada/article/737387--canadians-taking-on-record-levels-of-debt?bn=1

[GreenPartyVoter]

1. Wow. Banks that care about people taking on too much debt, instead of encouraging that very act.

[crazyjoe]

2. don't they see what has happened down here the last few years?