Why Alberta has the Highest Consumer Debt in Canada

YOUR DEBT YOUR LIFE   Experiencing some level of debt is quite normal and in most cases necessary for Canadians to live full lives with families and careers. At some point you may say to yourself, I’m going to buy a house, a car and even more, some have families. Children are a huge expense and unexpected costs become a reality as you adapt to parenthood. Yes, we all know how easily personal debt can be created and accumulated and tough to get rid of. We take on credit card debt, mortgage loans and car leases and do our best to work and stay on top of our personal finances. In recent years, household debt in the homes of Canadians has steadily increased on average and the Province of Alberta has had a spotlight on it ever since. Related: What pushes people over the edge financially Today we’re looking at why newspapers and financial journalists have reported for years on the state of debt in this province since its role as an energy exporter in Canada’s economy is unique and the consequences financially have in past years seemed overwhelming. With the national average household debt ratio quite high in Canada, […]

The Saturday Weekend Review #53: Do you know your household debt ratio?

WORKING YOUR WAY OUT OF HOUSEHOLD DEBT   Household debt which is an all-encompassing definition of not only personal debt but also mortgage loans has been the talk of the economy for quite a while. From a recently published CIBC Poll results, combined with the increased downloads of our personal Excel budget spreadsheet I started thinking about the facts and figures as I see them. The one particular figure that stood out was the 16% of Canadians that are prioritizing the paying down of their debt. Having topped the Poll last year with the same issue, it made me wonder if anybody got anywhere closer to paying their debt off or at the very least reducing it significantly. There was controversy last year when statistics were issued from various sources saying that for every dollar earned in Canada the average Canadian owed $1.64, then the way it was calculated by one bank suggested that the rate was actually lower. Either way, the debt ratio hasn’t really changed, although it has got slightly lower since the highs it obtained in 2012. I was curious to see what our household debt ratio was, so I got trawling the internet to find out how it’s calculated. There is […]

Too Many Bills Not Enough Money Each Month

Some Canadians are faced with the reality that they simply can’t get to the end of  the month before running out of money. We humbly turn to credit cards, lines of credit or even borrowing from family and friends to make ends meet. For some Canadians having a high debt load and spending more than they earn spells disaster and for some debt denial is better than acknowledging it. This ends up leaving no room for  retirement savings, the kids RESP let alone an emergency savings account. With grocery prices slated to increase in 2013 it’s time to buckle down and make a game plan before the going gets tougher. Do you feel like your hands are tied and you don’t know where to turn? You’re not alone but there are ways to tackle this problem so don’t give up. What do you need to do? You need to either improve your income or reduce your expenses meaning that you have to take a hard look at your finances. Do you know your net worth? You should. Do you use a budget? You should. Budget, but why should I budget when I don’t have enough money each month? That’s OK, you still need […]

%d bloggers like this: