If you thought that fleeing to Canada would allow you to escape the madness in the United States then think again.
According to a new report, Canadian households will add three percent more to their consumer debt levels on Black Friday and Cyber Monday. Right now, consumer debt is already a problem for millions of Canadians as they owe $1.65 for every dollar of disposable income they have.
The Moneris study prognosticated that Canadians will spend just under $18 billion over the four-day shopping period. This also means that retail sales will grow about 15% during this time frame.
What is interesting about this study is the fact that one-third of this spending will not contribute to the national economy whatsoever.
Unfortunately, it is years of record-low interest rates, easy money and easy access to credit that has contributed to consumers’ appetites for spending and debt. Debt servicing levels are already too much for many households to bear so just imagine when rates do go up.
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