“When your credit card is maxed out, you don’t go out and get another one and continue to accumulate debt at 18 per cent interest.”

“Households don’t operate like this and neither should countries. When your credit card is maxed out, you don’t go out and get another one and continue to accumulate debt at 18 per cent interest. Instead, you figure out a way to restrain your spending and you increase your payments to reduce your debt.”
Finance Minister Jim Flaherty, Toronto, 25 Nov 2011

Canadian household debt is now >150% of disposable income, more than the US at the peak of their housing bubble. Our Minister of Finance speaks of austerity yet continues to support loose mortgage lending that encourages more and more Canadians to overextend themselves into more and more debt. – vreaa

3 responses to ““When your credit card is maxed out, you don’t go out and get another one and continue to accumulate debt at 18 per cent interest.”

  1. I thought this quote was hilarious and completely inaccurate. Households in fact DO go looking for more credit when the debt from one source runs out. Otherwise we wouldn’t be in such dire straits in terms of our household debt, now would we? “Restrain spending?” Ha! Ya right…who does that? Not Canadians, that’s for sure.

  2. The government should do what Canadian households do and get a Home Equity Line of Credit.

  3. 2010 Government + (non-financial) Corporate + Household debt
    as percentage of GDP

    United States 268
    Japan 456
    Germany 241
    United Kingdom 322
    France 321
    Italy 310
    Canada 313
    Australia 235
    Austria 238
    Belgium 356
    Finland 270
    Greece 262
    Netherlands 327
    Portugal 366
    Spain 355
    Sweden 340

    Click to access othp16.pdf


    Canada is over the authors’ risk level on all three segments.

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