Did you know that Quebecers are among the world's most indebted households in North America? And that one in three Quebecers declare themselves to be concerned financial situation? But it's true!
Visit high level of indebtedness There are two main reasons for this:
- The weakness of interest rate
- The increase in property prices
Alarming figures on Quebecers' indebtedness
Quebec households are increasingly indebted, which is confirmed when you take a look at the figures following :
- Visit indebtedness ratio of Quebec households is 170%: this rate is similar to that of the United States before the 2008 financial crisis.
- Visit debts from 40,000$ in 2000 to 80,000$ in 2015
- In 6 years, the average debt of Quebecers without a mortgage rose from 10,443$ to 18,000$, an increase of 73%.
- 100,000 households currently have a financial situation at risk
- 46,000 individuals and businesses declared bankruptcy or submitted a payment agreement
Experts are predicting a steady rise in Quebecers' debt levels. But Quebec households are becoming increasingly indebted. sensitive to variations of their wages and interest rates, this can also have an impact on financial institutions.
Debt affects all ages
Young people from under 35 like older 65 and over are just as affected by debt problems.
Nonetheless, it is the under-35s who have the most to gain. record the strongest growth in Quebec. This can be explained by the desire tobuy assets as their first property, but the price of this property has risen considerably (as has its value).
The young people also benefited from low interest rates to invest in real estate. But these interest rates also benefit people aged 65 and over, who can invest in a second home, for example.
Should we be worried?
100,000 Quebec households are currently considered to be heavily indebtedBut are they worried about their situation? A few figures illustrate this possible concern about debt:
- 39% declare have difficulty paying bills month-end
- 35% think that their debts exceed their assets
- 31% think that their financial situation has not improved over the years
- 46% are pessimistic about retirement
In view of all this, we recommend that you calculate your debt ratio regularly to get an overview of your financial situation. Be in the know: the level of household debt is perceived as a serious problem. economic risk factor in Canada.
There are a number of solutions available if you are faced with a high level of indebtedness, such as consolidating your debtsthe consumer proposal and the personal bankruptcy.
Don't hesitate to discuss your debt problems with an insolvency and recovery trustee, who can advise you on your financial situation.
