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ohoh, Canada is going to sink on debt too!

sdifox

sdifox

No Lifer
http://www.theglobeandmail.com/glob...rage-debt-for-canadians-25597/article2042922/

25.5k EXCLUDING mortgage??? WTF!

Average debt for Canadians: $25,597

TORONTO— The Canadian Press

Published Wednesday, Jun. 01, 2011 11:19AM EDT <h5 class="articledateline sans sm">Last updated Wednesday, Jun. 01, 2011 11:38AM EDT

</h5>
A TransUnion study suggests Canadian debt loads grew at an average 4.5 per cent in the first quarter compared to a year-earlier, signalling appetite for debt is undiminished.
The credit bureau's analysis found that total debt per consumer, excluding mortgages, grew to $25,597 in the first quarter of 2011, up from $24,497 in the same quarter of 2010.
Increases were biggest in Quebec and Newfoundland & Labrador, with debt rising by 7.8 per cent in both provinces.
Consumer spending slowed during the first quarter, to just 0.1 per cent growth, leading some observers to believe they were focused on consolidating debt after borrowing heavily during the recession.
Consumers average credit card debt fell four per cent from the fourth quarter, when Canadian spending ramped up for the holiday shopping period. It was about the same compared to the first quarter of last year.
The analysis is based on anonymous credit files of all credit-active Canadians.
 
HardcoreRobot said:
high, but not astronomical if that includes car loans & student loans. if it was just CC debt, different story
Click to expand...

/thread

If you have two car loans under one roof it could be much higher. The graph in the link shows that non mortgage debt is one a steep downturn too.
 
It would be more interesting to see a 'non-secured' debt total. Not that it's great to extend yourself to buy that stuff, but having a car loan is a lot different then owing a CC company for a TV.

Even with 0 down, you're not upside-down on a car loan for very long.
 
Consumers average credit card debt fell four per cent
Click to expand...
Doesn't sound too bad if CC debt is dropping.

How does it compare to median household income? How does it compare to USA debt/houshold? Without more context the numbers are fairly meaningless.
 
Train said:
Doesn't sound too bad if CC debt is dropping.

How does it compare to median household income? How does it compare to USA debt/houshold? Without more context the numbers are fairly meaningless.
Click to expand...

Median Census Family Income was 68,860 in 2008.
 
sdifox said:
Median Census Family Income was 68,860 in 2008.
Click to expand...

You're not helping...

Did the medan income go up or down, and by how much, during the same period of measurement in the rise in debt?

Median in 2008 is pretty useless when the article is discussing 1st Quater 2011 compared to 1st Quarter 2010
 
Exterous said:
:thumbsup: I thought that number was really high until I remembered my wife's student loans
Click to expand...
Canada != US

Internet American friend said his tuition at lehigh (spelling?) was something like $30,000 per year. In Canada, university is more like $5,000-8,000 per year. Most people I went to university with did not require student loans.
 
ShawnD1 said:
Canada != US
Click to expand...

What?! B.S.! 😛

Internet American friend said his tuition at lehigh (spelling?) was something like $30,000 per year. In Canada, university is more like $5,000-8,000 per year. Most people I went to university with did not require student loans.
Click to expand...

It was a few years ago so it wasn't that crazy but even if you think of $10,000 of student loans for a 4 year degree all you need is a $15,000 car loan to make up the difference.

*shrug* It's hard to tell a lot from the story without knowing where the debt came from
 
the graph on the left is the one that concerns me

debt_1281156a.jpg
 
God I hope so. I'm debt free but can't (won't?) pay for a damn house because they're so "overpriced". Everyone I know has at least $5k credit card debt plus go knows what else in loans, and some of these people are live at home, late twenties, full-time job winners. Maybe I can score me a foreclosure!
 
Imp said:
God I hope so. I'm debt free but can't (won't?) pay for a damn house because they're so "overpriced". Everyone I know has at least $5k credit card debt plus go knows what else in loans, and some of these people are live at home, late twenties, full-time job winners. Maybe I can score me a foreclosure!
Click to expand...

Real estate in Edmonton is looking pretty good. Everything is overbuilt and the housing prices are slowly going down. I'll buy a condo or something when it all drops 20-30% 😉

http://edmontonhousingbust.com/
110202-5.jpg
 
No surprises. I see a lot of young families buying $400,000 homes. 40 year mortgage baby. Let your kids pay it off when you die. 🙄

Real estate in the Toronto area is grossly overpriced IMO. I'm waiting patiently for the bubble to burst. Only a matter of time. When it does, then I'll scoop up a nice house for cheap. Fingers crossed.
 
mmntech said:
No surprises. I see a lot of young families buying $400,000 homes. 40 year mortgage baby. Let your kids pay it off when you die. 🙄

Real estate in the Toronto area is grossly overpriced IMO. I'm waiting patiently for the bubble to burst. Only a matter of time. When it does, then I'll scoop up a nice house for cheap. Fingers crossed.
Click to expand...

I live in Toronto and I have no mortgage. Paid my 200k 30 year amortised mortgage off in 8 years. It's not a stamp either, built in 1987, about 3k sqft, lot is about 50x200


<==likes to brag
 
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I'm waiting to buy in Toronto as well, but am not averse to renting for the rest of my life either. Think I'll get a condo instead of a house too, they should get hit the hardest.
 
mmntech said:
No surprises. I see a lot of young families buying $400,000 homes. 40 year mortgage baby. Let your kids pay it off when you die. 🙄
Click to expand...

You seem to be saying that the length of a home mortgage should be less than the time that the buyer expects to keep that home. As the often cited average length of time for home ownership is in the 7-8 year range, this isn't practical for most people.

Now I don't feel sorry for those people who foolishly committed to huge mortgages (based on two incomes) that proved much more than they could afford to pay (when one of them lost a job). On the other hand, I've never seen it written anywhere that my kids are entitled to a paid-off house when I die. 😉
 
PowerEngineer said:
You seem to be saying that the length of a home mortgage should be less than the time that the buyer expects to keep that home. As the often cited average length of time for home ownership is in the 7-8 year range, this isn't practical for most people.

Now I don't feel sorry for those people who foolishly committed to huge mortgages (based on two incomes) that proved much more than they could afford to pay (when one of them lost a job). On the other hand, I've never seen it written anywhere that my kids are entitled to a paid-off house when I die. 😉
Click to expand...

40 year amortization is just irresponsible.
 
sdifox said:
I live in Toronto and I have no mortgage. Paid my 200k 30 year amortised mortgage off in 8 years. It's not a stamp either, built in 1987, about 3k sqft, lot is about 50x200


<==likes to brag
Click to expand...

50'x200' lot? Where the hell do you live?

Toronto's stupidly priced. A few houses a block away there are/were houses going for $550k+. We're talking 13'x80' lot row-houses that are probably over 50 years old. No front yard, maybe a parking bad down a single lane alley in the back. The "privilege" of living downtown...

Condos are oversupplied. So many more buildings going up, Spadina and Front area had at least 100 condos for sale in a 2 block radius a few months back. A bachelor unit costs at least $150k in the area.
 
Imp said:
50'x200' lot? Where the hell do you live?

Toronto's stupidly priced. A few houses a block away there are/were houses going for $550k+. We're talking 13'x80' lot row-houses that are probably over 50 years old. No front yard, maybe a parking bad down a single lane alley in the back. The "privilege" of living downtown...

Condos are oversupplied. So many more buildings going up, Spadina and Front area had at least 100 condos for sale in a 2 block radius a few months back. A bachelor unit costs at least $150k in the area.
Click to expand...

Old lot but decent aged house. Apparently the original burnt down and this was a rebuild. Housing is stupid crazy downtown. Yes I am within metro toronto city limits.


Got some rich people around me. Seen Lamborghini, Bentley, Land Rover, Jaguar, Maserati, MB, Ferrari, Porsche and plenty of toy motorcycles.
 
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