Description: Canadians owe more. That is, for every dollar of income, Canadians owed $1.678, up from the amount owed in the prior quarter. With interest rates now on the way up following years of low rates, economists worry that this rising debt load poses an economic risk.
Date: September 15, 2017
1) Why do you think debt levels are rising?
2) Wiley’s Kimmel, Financial Accounting: Tools for Business Decision-Making, Seventh Canadian Edition, often discusses the importance of financial information for decision making. Where do you find information in your personal financial life to help you decide whether or not to take on new debt?
3) Where in Wiley’s Financial Accounting: Tools for Business Decision-Making, Seventh Canadian Edition, can you find information on ratios that will help you determine changes in a company’s debt load?