We are trying our best to get back on track in terms of our finances, particularly during these uncertain times. Like other countries in the world, Canada is feeling it too. Currently, it manages an overall consumer debt that stands at $2.09 trillion. The debt has continued to grow even as credit card debt is now at a six-year low.
The increase in Canadian debt is thought to be due to mortgage surges within the real estate market across the country. According to Statistics Canada, mortgage loans rose in 2020, raising the total amount of Canadian mortgages to $1.63 trillion.
This has resulted in household debt rising. It makes sense for this to happen. As disposable income rises, so does debt growth. It’s important to note that this isn’t merely a one-time increase, but rather an upward trend over the past few years, with this final result pushing it over the edge.
Fortunately for homeowners who are interested in learning more about how they can manage their debt they can visit Creditpicks to understand Canadian debt or other resources that can help to teach them how to manage their finances and plan for the future.
If you want to learn more about Canada’s consumer debt you can read more on this topic down below:
Infographic Design By visit Creditpicks to understand debt in Canada