The problem with low debt levels

We’ve seen lots of warnings about dangerously high consumer debt levels in Canada for years now, but here’s something new: Millennials lack of debt may be a sign of trouble.

Insolvency filings by consumers have started to edge higher after a long decline that began after the last recession. As has already been widely noted, the share of insolvencies accounted for by seniors is growing faster than any age group. What has not had much attention is the fact that the young-adult share is falling. Could this be a rare bit of good news for a cohort of the population that has been struggling financially?

Falling insolvencies among young adults definitely sounds good, but every silver lining must have a cloud right?  What’s the chicken-little take on this situation?

Hoyes Michalos recently produced an analysis called Joe Debtor that looked at people who make insolvency filings. The firm says 86 per cent of debtors ages 18 to 29 are working, but their average income is the lowest of all groups at $1,996 on a net basis per month. The average unsecured debt for the group is $32,229, also lowest of all age groups.

Personal loans are the biggest debt component at $11,841 for young adults making insolvency filings, followed by credit cards at $9,858. Almost 30 per cent have student debt, with the average amount owed averaging $3,716.

Their problems in today’s economy may have kept millennials from worse debt problems, Mr. Hoyes suggests. “If you haven’t been able to get a decent job, then it’s a lot more difficult to get into a huge pile of debt.”

In today’s debt-hungry world a lack of bankruptcies is indicative of a low income, how’s that for a bummer?

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Lorrine
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Lorrine

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Slagathor
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Slagathor

….
Windsor-Essex, Ontario
May increase: 12.2 per cent

Hamilton, Ontario
May increase: 10.1 per cent

Fraser Valley, B.C.
May increase: 7.2 per cent

Victoria, B.C.
May increase: 6.3 per cent

Thunder Bay, Ontario
May increase: 5.4 per cent

That’s so weird – all the people in those cities really want to live in Vancouver

Bob Rennie.

Cat in the hat
Guest
Cat in the hat
vangrl
Member
vangrl

#44

strata parking lots in many buildings are considered “limited common property” and can’t be sold by the unit that is assigned that spot.

vangrl
Member
vangrl

Space it’s commonplace for Chinese to illegally poach in Africa, hence no one bothering to mention it on here.

Unfortunately public shaming doesn’t work in those cases, most Chinese don’t give a shit.

http://www.scmp.com/lifestyle/article/1281175/demand-ivory-mainland-has-led-illegal-poaching-africa

patriotz
Member

@42:

No, but I will point out that Zimbabwe, whose incompetent and corrupt government allowed this fiasco to occur, is one of China’s oldest and most loyal client states in Africa.

patriotz
Member

@43: “I bet more and more strata are going to go this route”

Assuming a strata does own parking spaces (for visitor parking I assume) they would have to file another strata plan to split them off as strata units and sell them. Possible but not simple. Or the apartment owners could split off their parking spaces and sell them, which is even less simple.

That’s something different from the developer retaining ownership of parking or other parts of the property and charging the strata to use it, which has become quite popular.

space889
Guest
space889

@Bull! Bull! Bull! – Depending on how much you can rent it for and the strata fees & taxes, it might actually be a much better investment than a condo in the same building.

I bet more and more strata are going to go this route to raise more money for special assessments or keep overall maintenance and strata fee low, especially if lots of owners are younger people who opt for car sharing services.

City will love this too for extra taxes which it currently don’t get.

space889
Guest
space889

If this guy had been Chinese, this would have been posted on here with all the “I’m not a racist” posters all giddy about how this is another definite proof of how barbaric and uncivilized Chinese and China is.

http://news.nationalpost.com/news/world/minnesota-dentist-who-killed-cecil-the-lion-is-on-the-lam-after-social-media-users-issue-threats-against-his-life

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

Russell Napier: What Happens When Markets Realize China Is A Forced Seller Of Treasuries

http://www.zerohedge.com/news/2015-07-29/russell-napier-asks-what-happens-when-markets-realize-china-forced-seller-treasurys

patriotz
Member

@33: “The Los Angeles housing market is making all kinds of new records”

“All kinds” doesn’t include the Case-Shiller index for LA, which is still down about 15% nominal from the peak in 2006.

http://ca.spindices.com/indices/real-estate/sp-case-shiller-ca-los-angeles-home-price-index

patriotz
Member

@32:

Nice to see Global is still upholding those high journalistic standards that led to the Mac Marketing fiasco. Even though they are citing averages, I doubt any of those increases took place “in May”.

At least Victoria can be checked against Teranet, whose index for that city went up 5.65% in the year ending June 30, 2015.

History
Guest
History

But you wont see a cut in lard ass jobs. Protecting The Bubble, job #1
The challenge now is to provide lard ass for ovr indebted minorities and kids.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

i mean yield is up.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

5 year goc bond is up! rate spike guys!? rate spike!?!?!

Five-year: as of tuesday is 0.811%, previous day was 0.774%

http://www.brandonsun.com/business/breaking-news/canada-bond-yields-and-prime-rates-for-tuesday-july-28-319012691.html

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
southseacompany
Member
southseacompany

“See How the LA Housing Market is Returning to Bubble Madness”, Curbed LA

http://la.curbed.com/archives/2015/07/los_angeles_housing_market_bubble.php

“Try to remember back to the days before the recession, the days of the mid-aughts real estate bubble: prices were flying high, everyone was trying out flipping, and houses sold like hotcakes. Then it all fell apart and the country and world were plunged into years of economic pain that most people still haven’t recovered from. So let’s do it all again! The Los Angeles housing market is making all kinds of new records, surpassing even the most bubblicious heights”

southseacompany
Member
southseacompany

“5 booming housing markets that aren’t Vancouver or Toronto”, Global News

http://globalnews.ca/news/2070105/5-booming-housing-markets-that-arent-vancouver-or-toronto/

“Average home prices grew faster in this sourthern Ontario region in May than they did in either Vancouver or Toronto.”

“The oil shock has knocked back several markets throughout the Prairies by a few steps, experts say. “But many markets outside those hard-hit by the slide in oil prices are in fine or improving shape,” ”

Windsor-Essex, Ontario
May increase: 12.2 per cent

Hamilton, Ontario
May increase: 10.1 per cent

Fraser Valley, B.C.
May increase: 7.2 per cent

Victoria, B.C.
May increase: 6.3 per cent

Thunder Bay, Ontario
May increase: 5.4 per cent

southseacompany
Member
southseacompany

“Fed rate hike would ‘crush’ US housing: Analyst”, CNBC

http://www.cnbc.com/2015/07/28/fed-rate-hike-would-crush-us-housing-analyst.html

“Demand for U.S. housing in the second half of 2015 looks so weak that the Federal Reserve will not be comfortable starting its interest rate tightening cycle, independent real estate analyst Mark Hanson said Tuesday.”

“”Having rates at zero hasn’t done much if you take a look at the numbers, but having rates 200 basis points higher or 100 basis points higher would crush housing. I don’t think they can take that chance,” ‘

southseacompany
Member
southseacompany

“U.S. Fed now seen delaying interest rate hike a bit longer”, Global news

http://globalnews.ca/news/2136974/u-s-fed-now-seen-delaying-interest-rate-hike-a-bit-longer/

“On Wednesday, when it ends its latest policy meeting, Fed officials will issue a statement that will be parsed for clues to just when the first rate increase since 2006 might occur.”

“Although the September meeting, when Yellen is set to hold a news conference, is seen as the most likely time for a rate increase, some analysts think the Fed might wait until December.”

““The recent volatility in the global economy and financial markets has given the Fed pause,””

NoStupid
Guest
NoStupid

@BBB. LOL. Nice to see you’re still an asshat. I havn’t visited in a while and was worried someone might have shanked your dumb ass.

Are this big a twat in person, or just an online douchebag?

George
Guest
George

I just can’t wrap my mind around what it would be like to live in a city or town with a 22% vacancy rate. That means almost every 4th rental unit is vacant. I guess you’d have no problem renting with a pet in that town. It boggles my mind because it is so opposite of what we have here.

w
Guest
w

For those who think IIP will stop HAM, you just don’t know mainlanders. For generations they’ve been surviving under an oppressive systems surviving by hook or crook. Our regulations are a walk in the park to them and cheating is a way of life.

Immigration guide for detecting marriage fraud called ‘racist and offensive’

Red flags include Chinese marrying non-Chinese, small wedding receptions, an uneducated Canadian with a low-paying job or on welfare trying to sponsor a foreign spouse.

http://www.thestar.com/news/immigration/2015/05/19/immigration-guide-for-detecting-marriage-fraud-called-racist-and-offensive.html