Description: According to the credit rating agency, Equifax Canada, Albertans have the highest debt levels of all Canadians. What’s more, delinquencies are up over 25% from the previous year. Perhaps this delinquency stat should be of no surprise, given the price decline in oil and its related negative impact on employment in the oil patch. Equifax warns consumers that cheap credit can’t last forever, and that many Canadians could face serious consequences when interest rates begin to rise.
Date: March 10, 2016
1) What is your personal philosophy regarding consumer debt?
2) The article discusses that the only age category that showed an increase in delinquency was the under 26 age group. Does this ring true with your understanding of how things are going for your classmates and recent graduates?
3) What do you think that the accounting profession could do to help educate Canadians about how to manage their personal finances?