2016, Canada accomplished a dubious economic achievement. For the first time in its history, the amount of debt held by Canadians surpassed the amount of output, or Gross Domestic Product, the country produced (Isfeld 1). This increase of personal debt, leading to Canada surpassing 100 per cent of debt relative to GDP, corresponds with the low interest rates that have been offered to consumers since the ‘Great Recession’ to stimulate growth (1). Underpinned by the rising price of housing in…
Household debt is affecting the lives of Canadians every day and is one of the primary focuses of the Bank of Canada and the federal government. After analysing the issue and considering Canada’s past regarding household debt, recommendations for improving the financial position of Canadian households are outlined below. Promoting Education in Financial Literacy There is a strong correlation between the lack of financial literacy and household debt in Canada. People who are more educated…
The use of consumer credit has become an increasingly important aspect of the U.S. economy. Everyday Consumers use different forms of credits to purchase a certain good. For example, credit cards, loans, store cards, auto finance, and mortgages are the most common. Overall consumer credit has many uses and forms, but it however can cause many problems. One problem that originates from consumer credit is stress. Another dilemma that can occur is going into debt. But besides being stressed…
money and buy things we want and need. . The effect of credit cards on the economy is very complex, it has a positive and negative outcome. The financial stability of the economy depends on us as consumers, every time we buy something it puts more money into circulation. This means that when consumers spend a lot of money buying things the economy has a lot of money circulating throughout it. In recent years there has been a decrease in the amount of actual…
75% to 1.00%. This has an impact on many of the companies and consumers within the United States. The rise of interest rates impacts mortgage loans, credit card rates, student loans, even the U.S. national debt. To narrow which industry to focus on, my KPMG audit team will focus on the impact this has on our client, VISA, within the credit card industry. Although our client does not extend credit to its consumers, many consumers will be forced to rethink whether opening a line of credit is…
Current student debt is an all time high and it’s only getting worse. Current federal student debt is at 15 billion dollars with over 3 quarters of new jobs needing a post-secondary education. Though, it’s an asset having a diploma in your back pocket, not many can afford a college or university education as tuition costs continue to rise. Nevertheless, student debt not only affects student’s wallets but the mental state of mind of the body as well as the economy and the after-life of one. Even…
is what every consumer needs to know about short term payday loans and other options available to them. What Are Payday Loans? Payday loans serve as…
financial debt collides, everyone knows it, and everyone can see how much of a disaster it has become economically. In society, tragedy strikes someone financially daily. According to Merriam Webster’s online dictionary, the word debt is defined “as a duty or obligation to pay money under an express or implied agreement”. Even though some people think building a great credit score is rewarding, it has only caused significant amount of grief, because of various types of consumer debt. Debt…
background, consumers have the ability to borrow funds at reasonably low interest rate without settling with lenders who place incredibly large interest on money. Learning how to establish and maintaining credit is a skill that everyone needs to take serious and perfect. To establish good credit, consumers should pay their bills on time, keep credit balances low and/or maintain the debt to income ratio, and periodically check for any discrepancies on credit report. To begin with, consumers…
There is a common myth that consumers tend to believe. They believe that credit cards could help them build up their credit. Is this really true? According to Steve Repak, it is not true. Having a credit card does not actually boost someone’s credit. In his article, “The A to Z of Credit and Credit Cards”, Mr. Repak brings up some solid facts that support the claim that having a credit card does not necessarily mean that a consumer will have good credit. In the article, he describes the literal…