canadians in debt!
A report on debt aspect of Canada was put forward by StatsCan on Friday, March 23,2011 to bring out certain shocking facts.
Canadians overloaded with debt
Top Canadian Finance and Economy experts with the best experience and knowledge have raised an alarm that Canadians have a lot of burden of debts. The debt amongst the household balance sheet for Canadian citizens has been on assent for many years.
A report revealed by Statistics Canada pointed that the overall debts that the Canadians are in to have been accumulating and the conclusions are based on figures of 2009. The report also shows that each borrower owes approximately $114,400. The point to worry about is that despite the interest rates being as low as one percent by Bank of Canada the amount owed is high and over one fourth of the borrowers owe some very handsome debt. These interest rates last were changed in 1950’s, the longest duration of unchanged interest rate.
Debts across Locations
Though, British Columbia has the most expensive housing markets in the country yet, the residents here scored of second highest debts position with an approximate amount of $155, 500. Alberta has the most indebted citizens owing a typical amount of $157,700. Quebec and Atlantic region Canadians have the least averaged debtors amounting to $69,300 and 78,900 respectively.
The Higher the Education and Income, the Higher the Debt
There are debtors in the Education sector too and there is a rise in figures of Education Debt as well. The higher the education a Canadian citizen takes the higher his debts accumulate, discloses the StatsCan report. On an average those who took loans for graduation purpose owe $145,400 and those who borrowed money for post graduation classes owe a minimum average amount of $114,300.
This is not the end, in Canada, people under 45 years, which would only be 45% of the population, owe the highest debt amount of approximately $129,200, those between 45 and 65 are in debt s of approximately $102,800.
Again higher the salary the higher is the debt found the StatsCan report. In fact, as loans are in line with the salary structure the report concluded that if a household’s income is $100,000 annually then they would borrow from bank approximately $172,400 to be repaid. Thus, the debts they owe are far higher than what they earn.
Experts know it all…?
A shocking aspect of the report revealed that those who had knowledge on an average owe debts that were approximately $30k more than those who are novice in field of finance management.
There have been many people saying they have the financial knowledge and have had approximately debts of $29,000 more than those who said they did not have any knowledge.