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November 22, 2005
Personal debt in Canadian families
The latest situation seems to be precarious and could worsen any slowdown in the economy. Section 11 indicated that household spending drops sharply during recessions. Higher debt loads could may be the next decline even larger.
Whether or not the current debt levels are at crisis levels may depend on who holds the debt. The 1984 household survey found that debt, as a percentage of assets were highest among younger households. At that time, debt as a percentage of assets was 37% for households under 25 years of age, 29% for those aged 35-44, 10% for those aged 45-54, 5% for those aged 55-54 and less than 2% for households 65 and over.9 The weaker income trends among younger families suggests that an even greater share of the total debt may now be borne by those under the age of 45.
Posted by thdyck on November 22, 2005
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