Canada’s household debt levels will force around 1 in 5 people with debt to sell assets to stay above water.
A Leger poll conducted for the Financial Planning Standards Council and Credit Canada has revealed that 24% of men are in this situation compared to 14% of women; along with 23% of those with children under 18 compared to 16% who do not have children.
Debt is expected to rise in 2019 with 62% of survey respondents expecting to take on new credit this year; 23% expected to get a new credit card or increase an existing balance, 15% will take a new line of credit or increase their current balance, 13% will take out a new or increased vehicle loan or lease, and 12% will take a new or increased mortgage.
The increased debt burden will further stretch household budgets, especially if interest rates were to rise.
But many Canadians are unaware of their own spending habits and lack an affordable budget, if they have one at all.
“Budgeting and debt are inexorably linked," says Laurie Campbell, Credit Canada CEO. "There's no better time than 'budget month' for people to take a step back and holistically review their finances, housing costs and expenses – essentially, how much money is coming in versus how much is going out."
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