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article imageSoaring Canadian debt credited to consumerism

By Gordon K. Chan     May 11, 2010 in Lifestyle
Canadian household debt has reached a record high and is among the highest in developed countries. Compared to twenty years ago, Canadians now spend two and a half times more on goods and services.
"Consumerism has taken hold (in Canada) and people who have access to credit, are taking advantage of it," says one expert says in a CTV report.
It is reported that in the eighties, most Canadians saved 20 percent of their disposable income.
Today, those savings have dived under one percent.
Canadians are ranked first in debt-to-asset ratio according to Certified General Accountants (CGA) Association of Canada report. Slovak Republic, Greece and the U.S. were behind respectively.
The report states that "it is clear that Canadian households rely much more heavily on consumer credit than their counterparts in other countries."
Concerns of unsustainability have been cited and point toward the problem of Canadian's "readiness to consume now and pay later", reports The Gazette.
"The concern is do [Canadians] understand the full cost of paying later?" says the president of the CGA Association.
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