The average Canadian may be starting to heed the advice we’ve been hearing for months now – start trimming the amount of debt you’re carrying.
Everyone from financial advisors to the central banker to the finance minister has been cautioning Canadians about the amount of debt they’re incurring. Interest rates are beginning to move upward and that will make it difficult to make ends meet if debt levels are too high.
The latest report on this topic shows we have begun to reduce our debt burden – not a lot, though, but it is a move in the right direction. It is slightly lower in relation to our income levels.
And it couldn’t have come at a better time, as the average Canadian’s net worth is also declining. This is, no doubt, a result of lower real estate values which are eroding overall net worth across the country. And when the value of your assets go down, it is a good thing to see debt levels going down as well because the opposite – more debt with lower asset values can spell trouble.