Canadian debt loads getting lighter
Canadians appear to be taking endless warnings from policymakers to heart by borrowing less and getting their financial houses in order ahead of possible interest rate hikes.
A report released on Wednesday by CIBC states that the total amount of outstanding debt carried by Canadians decreased in March. In this article from CBC news, we learn that Canadian household debt is growing at a slower pace than the United States, a trend that hasn't been seen since 2002. Lines of credit are showing a slight increase, believed to be the result of consumers transferring higher interest balances on credit cards to lines of credit.
Mortgage debt is showing signs of slowing as well. It is reported that the annual increase of mortgage debt as of March of 2012 is at 6.3 per cent, a figure below the averages of the last 10 years. The report also states that these figures are causing a predicted softening in home prices, which should occur gradually in the near future, calming fears about a housing bubble.
To read the full article from CBC news, click here.