BC Consumer Debt Highest In The Country, Up 6.2% YOY – “In a city where this house is assessed for more than $1.3 Million, it’s understandable why some British Columbians feel rich. But what if prices fall?”

“In a city where this house is assessed for more than $1.3 Million, it’s understandable why some British Columbians feel rich. More than any other province, people here have been borrowing against their homes, running up lines of credit, and credit card debt. …
The average British Columbian has $38,837 in consumer debt, that’s an increase of 6.2% compared with a year ago. And it doesn’t even include what they may owe on their mortgage. And what have they been spending it on… renovations, and tearing down and starting from scratch. And vehicles.. lots of vehicles.. sales of luxury cars have seen double digit increases.
But what if prices fall? Neighbourhoods like Vancouver’s West Side have already seen that happen, and sales have slowed down considerably just about everywhere.”

– from ‘B.C. personal debts increase sharply’, CBC, 14 Nov 2012

Yup.
See what’s happening?
Concerns long held by the bears are rising in public consciousness.
– vreaa

13 responses to “BC Consumer Debt Highest In The Country, Up 6.2% YOY – “In a city where this house is assessed for more than $1.3 Million, it’s understandable why some British Columbians feel rich. But what if prices fall?”

  1. “But what if prices fall?” – we sell the whole mess to China, with a big banner: Welcome criminals!

  2. Real Estate Tsunami

    Why worry, Capital Direct and Alpine Credit will lend you the money that you always wanted for 18%.
    So buy the new car, and go for the dream vacation.
    You can always pay it back, because your RE will continue to go up by at least 10% each year.

  3. I read a good news story on that Tampa “socialite” Jill Kelley, who is involved in that Petraeus mess. I guess she lives in a 1.3M mansion (ha! that’s only average in Vancouver), but her and hubby keep getting sued for unpaid debts. The Kelleys were discribed as “Nillionaires”… people who appear to have the lifestyle of Millionaires with close to nil net worth. I was thinking the Lower mainland is full of Nillionaires. I guess the Nillionaire’s rallying cry is “All Flash, No Cash”.

  4. BPOE has a solid state taste of word about it, don’t you think, old chap?

    Not tinny like renter or hourly wage eeeeeeeeeeeeeeekkkkkk

  5. Next they’ll be coming up with new lexicon for securitized debt that isn’t securitized.

    So much hangs on the premise that prices cannot (significantly) fall.

    • One of my favourites from the GFC is “pier loan,” intended as a bridge loan, i.e. high cost, short term financing until an asset is sold or more favourable financing can be arranged. Alas, sale or refinance becomes impossible, leaving both the borrower and lender stuck in a loan they didn’t want. A pier is a bridge to nowhere, folks.

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