Description: Canadians are carrying a lot of debt. Canadians debt ratios now sit at 169% of disposable income of households. In 2006 the ratio was at 132%. Canada’s central bank is concerned that the consumer debt issue could put the economy in trouble as the low interest rates of the past few years creep higher.
Date: November 14, 2018
1) Are you or or your classmates carrying any student debt? How will it impact starting out after university?
2) Do you think consumers have been taking on too much debt during this time of low interest rates and high employment?
3) Check out the Accounting Matters feature on page 535 of Wiley’s Financial Accounting: Tools for Business Decision-Making. What percentage of consumers would default on a mortgage if laid off for more than three months?