Stabilizing Consumer Debt?
A recent study by TransUnion suggests that Canadian debt has been levelling out over last few years. Figures provided in that report proves the fact. Interestingly those numbers did not include mortgage debt.
What About Mortgage?
The statistics is not complete without mortgage loan. Close to six million Canadian homeowners have mortgage on their homes. After adding mortgage on the existing debts the picture becomes clearer, albeit a scarier one. A Bank of Canada study, published last year clearly shows the trend.
Lower Debt Service Cost and Lower Default:
Regardless of raising debt, thanks to the recession, the interest rates are low and so are the payments. That has produced lower bankruptcies and fewer defaults.
Future?
We are not sure if the rates are going to go up in future but the recent past has produced very smooth defaulter curves. Once the situation changes – we should be prepared for higher numbers in both fronts.
