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state of personal indebtedness in Canada. You may focus on student debt or the society as a whole. - Research Paper Example
Author : kuvalisjules
Finance & Accounting
Pages 5 (1255 words)
Introduction Consumer debt or personal debt is the debt outstanding against the individuals and not to the businesses or governments. In economics terms, it is also called the debt which is basically used in the consumption rather than making the investments…
Recent figures suggest that the current level of personal debt in Canada is on the highest level for the past 8 years. The average non-mortgage personal loan of a Canadian is approximately $26,221 in the second quarter of 2012 suggesting that the overall debt levels are on the rise. (Johnson, 2012) There can be various reasons for this including the general trends and preferences of the consumers as well as the ability of Canadian banks to remain profitable and continue to supply consumer debt despite the fact that overall global scenario may not be encouraging. These trends are considered as troublesome as persistently high levels of personal debts can actually create serious consequences for the economy as a whole. This paper will discuss about the personal debt in Canadian society as a whole and will discuss the concerns as well as solutions for it. Personal Debt in Canada The recent trends of personal debt in Canadian society as a whole have been alarmingly high. The current average debt level in the second quarter of 2012 stood at $26,221 higher by $192 from the previous quarter. This figure is also considered as the highest during the last eight years since Credit Bureau actually started to track the personal debt levels. ...