Are you getting deeper in debt? Or maybe you can’t save because you’re busy paying it down. You’re not alone. New numbers show Canadians are increasingly relying on credit cards and credit lines to finance day-to-day expenditures, and the total national household debt has reached an all-time high of $1.3 trillion.
The report is by the Certified General Accountants Association of Canada, and it says 42 per cent saw personal debt increase in the past three years, and 21 per cent can’t manage their debt.
More than half say that day-to-day living expenses are the main cause for the increasing debt, and that’s an increase over last year. Debt is making up an increasing percentage our assets, and it means many of us aren’t saving for retirement.
Meanwhile, lending by the chartered banks has flagged in the weak economy — except in consumer credit, which continues to swell. The best advice is: think twice before loading up those credit cards if you don’t have the cash to pay them down right away.