Canada is among seven countries that are “most vulnerable to a debt crisis” within the next three years, Forbes magazine says in a new analysis.
Payday loan companies in Ontario can charge a maximum of $21 on every $100 borrowed. That may not sound like a lot, but if you take out that loan every two weeks, for a year, you will have paid $546, which is an annual interest rate of 546 per cent. That’s a lot higher than even the highest credit card interest rate.
But so what?
Borrowing from Aesop’s fable of the ant and the grasshopper, I see Canada as a country dominated by ants (i.e. prudent, hard-working savers). Yet one would never know it judging from how certain high-profile statistics are bandied about.
For the most part, the Canada Revenue Agency knows what Canadians are making. Banks and employers often submit T4s (income from an employer), T4As (income from a pension) and T5s (income from investments) to the CRA right around the time you’re getting your hands on them.
In the Greek myth of Sisyphus, he was condemned for eternity to roll a boulder up a hill, just to see it roll right back down. For those of us trying to build up emergency funds of short-term savings, it can feel like a similar exercise: As soon as you manage to put some cash aside, you have to draw it down for sudden expenses — and then start all over again.
Forget the picture of the doddering senior getting ripped off by fraudsters, a new survey says Millennials are the most likely people to be duped.
The study from ratings agency Equifax Inc. found 50 per cent of suspect and highly suspect credit application frauds in Canada in 2015 were against Millennials or Generation Y — regarded as anywhere from age 16 to 36. In second place was Generation X at 29 per cent and then Baby Boomers at 17 per cent.
Alberta’s young, well-paid workers racked up the highest debt levels in the country when oil was at $100 (U.S.) a barrel. Unending work and wages meant Albertans were once able to manage their higher-than-average consumer debt loads…..