Canadian credit card losses soar!

[trent]

Here is an interesting article from Toronto Star about the credit card debt problems Canadians face:

http://www.thestar.com/Business/article/581940

For all of you that believe in the "Canada is different" story, read the article, as it offers a few sobering facts like:

1. Canadians' debt-to-disposable income ratio stands at 130 per cent, which is higher than US.
2. Canadians had $80 billions outstanding credit card debt a year ago.
3. Delinquencies were up over 5 per cent at the end of last year
4. Credit card interest rates are going up

[Canadian]

Originally Posted by trent

Here is an interesting article from Toronto Star about the credit card debt problems Canadians face:

http://www.thestar.com/Business/article/581940

For all of you that believe in the "Canada is different" story, read the article, as it offers a few sobering facts like:

1. Canadians' debt-to-disposable income ratio stands at 130 per cent, which is higher than US.
2. Canadians had $80 billions outstanding credit card debt a year ago.
3. Delinquencies were up over 5 per cent at the end of last year
4. Credit card interest rates are going up

I've repeated this to my friends so many times that I completely lost count - we are in worse shape than Americans. They get higher salaries for the same type of work and qualification, they have much lower taxes, everything is cheaper in US, and Canada exports and by extension the economy is totally dependent on the US one. If US is in trouble so are we.

As for the debt carried by Canadians, it's finally good to see somebody admitting in public that we have a problem, big problem!

[Steven]

Thanks for the article Trent!

I must say after reading this, I don't feel too optimistic about the Canadian economy at all. I never knew that Canadians carry that much debt, and I always thought that we are much better off compared to Americans. Well, obviously that's not the case.

[trent]

Originally Posted by Steven

Thanks for the article Trent!

I must say after reading this, I don't feel too optimistic about the Canadian economy at all. I never knew that Canadians carry that much debt, and I always thought that we are much better off compared to Americans. Well, obviously that's not the case.

Yet, the majority of Canadians believe government lies, and think that everything will be just fine in a few months. This is not going to happen, and they better be prepared for what's coming.

[bullish]

Originally Posted by trent

Yet, the majority of Canadians believe government lies, and think that everything will be just fine in a few months. This is not going to happen, and they better be prepared for what's coming.

And what exactly is coming? Please look in your crystal ball and enlighten us.

[sunshine]

I'll just ignore the comment by the previous poster and will add that I never thought Canadians carried that much debt. I always was under the impression that we are better with finances compared to Americans.

About the government - they admitted last week that worse times are approaching.
I really don't know what to think anymore but when a friend of mine in US told me yesterday that 4000 people line up for 350 jobs it sounded really scary and depressing.

[trent]

Originally Posted by bullish

And what exactly is coming? Please look in your crystal ball and enlighten us.

If you don't know what's coming then you are the most ignorant Canadian ever. Here is what's coming:

1. Lots of layoffs
2. Housing crash in Canada (from peak to bottom the average Canadian house will lose half its value)
3. Severe economic recession, possibly depression
4. Inflation, possibly hyperinflation

Happy?