Earlier in February, the McKinsey Global Institute released a report regarding debt and global economies, and after surveying 47 countries, listed seven with ‘potential vulnerabilities’ when it comes to household debt. Among these seven is Canada, and the report argues that this Canadian household debt could prove disastrous, leading to further financial instability and a consumer spending slowdown.
A recent Globe and Mail article touched on this report, stating that “As Canada’s economy begins to slow, the country’s growing household debt burden is raising new concerns as it outpaces that of most developed countries. In fact, Canada had the second-biggest jump in household debt-to-income ratios of any country other than Greece between 2007 and the second quarter of 2014.”
You can view the entire report here.
For many Canadians, this report likely does not come as a shock - a vast majority carry consumer debt loads that are significant. Canadian household debt has become a major source of stress for many individuals and families alike, leading either to a cut in consumer spending (which the report suggested as a potential outcome), placing some financial responsibilities before others, or both.
If you find yourself in the Canadian household debt camp that is not so much swimming as treading water, it might be time to consider some alternatives. A debt consolidation, consumer proposal or bankruptcy can be a lifesaver when it comes to getting your finances back on track and eliminating financial stress from your life.
Tired of being part of these startling statistics? DebtCare can help. Call us today to find out about the options available to help lower your consumer and household debt: 1-888-890-0888.