We love debt even more than Americans

Canadian consumer debt.  It’s not just growing, it’s growing faster.

Transunion has released their latest quarterly analysis and it shows Canadian household debt loads increasing 400% percent faster than inflation.

Statistics Canada pegs Canadian household market debt at an astounding 163% of disposable income.

For comparisons sake, the US housing bubble saw household debt peak in 2007 at 128% of disposable income.  By 2011 the US rate was down to 112%.

The good news? Credit card debt is actually down year over year and delinquencies across all types of debt remain low.

Transunion puts the average household non-mortgage debt at $26,768.  Do you owe more or less than that?

Higgins said the increase stands in stark contrast to encouraging signs from relatively stagnant debt growth in the prior three quarters.

He also points out that in the past five years, debt loads have increased 400 per cent more than the rate of inflation — with inflation as measured by the Consumer Price Index up nine per cent and consumer debt jumping more than 37 per cent.

“Debt’s outpacing us and continues to outpace us, so at some point in time there’s going to be a reconciliation,” Higgins said.

“Hopefully it’s not drastic and hopefully it doesn’t hit everybody, but there’s going to be a correction somehow along the way.”

Read the full article over at the CBC.

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Ralph Cramdown
Ralph Cramdown
7 years ago

@Anonymous: “Between patriotz and Bernanke, … I think I would have to bet on Bernanke having a better grasp on US housing and banking issues.”

Yes, but as I’ve said before, “Short-stack central banking is closer to poker than many people realize.”

patriotz
7 years ago

@Anonymous:
“Between patriotz and Bernanke, … I think I would have to bet on Bernanke having a better grasp on US housing and banking issues.”

October 27, 2005

Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve…

Many economists argue that house prices have risen too far too fast in many markets, forming a bubble that could rapidly collapse and trigger an economic downturn, as overinflated stock prices did at the turn of the century…

Bernanke’s testimony suggests that he does not share such concerns, and that he believes the economy could weather a housing slowdown.

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255.html

rp1
rp1
7 years ago

@Yalie: “from watching Bull Bull Bull slowly descend into madness”

If he is genuine then I see his madness as not being anything new. We’re all delusional, God bless George Carlin. I take no joy in watching someone struggle with events.

rp1
rp1
7 years ago

Ben Bernanke is a committed bubble blower in the Greenspan tradition. He really needs to go.

rp1
rp1
7 years ago

@Anonymous: “subprime is contained.”

Anonymous
Anonymous
7 years ago

@patriotz: Between patriotz and Bernanke, … I think I would have to bet on Bernanke having a better grasp on US housing and banking issues.

Arthur Fonzarelli
Arthur Fonzarelli
7 years ago

@N – you too can own a Main St. teardown for only $650,000 – only to replace it with something that still requires bars on all the ground floor windows.

Vote Down The Facts
Vote Down The Facts
7 years ago

@gokou3: “So you just contradicted yourself.”

Not at all. Assessed values are inaccurate and open to manipulation. That was my point all along.

Naked Official #9000
Naked Official #9000
7 years ago

@N:

these are hilarious! needed a laugh.. thanks

Anonymous
Anonymous
7 years ago

@Anonymous: Googled it. I don’t think that explains these wild fluctuations.

Anonymous
Anonymous
7 years ago

@Naked Official #9000: What is command economy?

Naked Official #9000
Naked Official #9000
7 years ago
Naked Official #9000
Naked Official #9000
7 years ago

@Anonymous:

because we don’t live in a command economy?

Anonymous
Anonymous
7 years ago

@Anonymous: Who dislikes a simple question?

Anonymous
Anonymous
7 years ago

@paulb: Why is it that we get these wild fluctuations from day to day? Why a hundred something sales on Wednesday and fiftyseven on Thursday?

Anonymous
Anonymous
7 years ago

@paulb:

Paul.. I thought you were cool – cross fitters are the scourge of any gym: If I see any more kipping (sic) pull ups I am going to lose it. What did Arnold always stress? “make haste slowly – use perfect form, less weight if necessary to get to that eleventh and twelth rep with maximum contraction – isolate!”

http://youtu.be/CXymeeKJXUM

These vids are hilarious – and there’s no end to them.

I’ve noticed a high proportion of house humpers and those employed in RE are into cross fit.

gokou3
gokou3
7 years ago

@Vote Down The Facts: “There’s an incentive for a seller keeping their assessed value as low as possible – the property will sell for its fair market value anyway, whilst attracting lower property taxes.”

So you just contradicted yourself.

Con-Rad
Con-Rad
7 years ago

F*ck I misread. 57 sales.

I hate you guys.

Con-Rad
Con-Rad
7 years ago

Lookey here, another huge listings day.
157 Told you, losers.

Bailing in BC
Bailing in BC
7 years ago

@pricedoutfornow:

I am in agreement with you. I know that there are lots of people who are underwater. Not so much in the Lower Mainland because the crash has not set in there yet, but definitely in the the Okanagan (and in Squamish were I’m based. This is because the crash has already started here. My problem with Higgins statement was that he seems to be saying that being underwater was the cause of the RE crash in the US as opposed to the result.

jesse
7 years ago

@Bull! Bull! Bull!: “They are buying homes and real estate in a number of countries, especially Australia, Canada”

Well if they are buying they’re not buying in Vancouver.

lol

Bally
Bally
7 years ago

@specialfx3000:

“Planning to hang them on a yellow helicopter…”

That’ll explain the skid marks then.

Bull! Bull! Bull!
Bull! Bull! Bull!
7 years ago

lol…

Pettis: Chinese want less commodities, more houses

“What are Chinese currently buying? They are buying homes and real estate in a number of countries, especially Australia, Canada, the United States, and, to the extent that they can get around newly imposed restrictions, Singapore and Hong Kong.”

http://www.macrobusiness.com.au/2012/11/pettis-chinese-want-less-commodities-more-houses/