Canadian household debt at a record $1.5 trillion - MoneySense

Canadian household debt at a record $1.5 trillion

Majority of debt going to food, housing and transportation




The Certified General Accountants Association of Canada (CGA) reports that household debt is at an all-time high with single parents, retirees and those households making less than $50,000 a year in the most debt.

“For these individuals, there is little hope for improved financial condition,” says Anthony Ariganello, President and CEO of CGA-Canada in the report.

One-third of retired households have an average debt of $60,000 while 17% have over $100,000 in debt.

The CGA also reported that 27% of non-retired Canadians do not save at all, even for retirement.

Thirty-eight per cent of those surveyed said they are not confident about their finances in retirement, and 52% said that they had a clear idea of how much personal savings they would need to be satisfied financially in retirement. That means just under half of Canadians do not have a solid financial plan for retirement.

According to the report, the main causes of debt are due to day-to-day living expenses, not mortgages or education. In other words, Canadians are spending to consume instead of spending in the hope to create more wealth in the future.

Comments are closed.