Alarming! US consumer debt up $14.1 billion in November

In this May 9, 2012 file photo, a Visa credit card is tendered at opening of the Superdry store in New York's Times Square. Richard Drew/AP

Martin Crutsinger The Associated Press
U.S. consumers increased their borrowing in November, as stronger demand for auto and student loans offset a drop in credit card debt.

The Federal Reserve said Thursday that consumer borrowing rose by $14.1 billion following a $16 billion increase in October. The gains have pushed consumer debt excluding real estate loans to a record level of $3.3 trillion.

The latest figures suggest that an improving economy and strong employment gains over the past year may be making consumers more comfortable with ramping up their borrowing

Alberta | Low oil price means $500M budget deficit

Alberta Premier Jim Prentice gives a state-of-the-province address in Edmonton, Alberta on December 9, 2014. Alberta Premier Jim Prentice says oil prices have plunged so far so fast that this year's projected budget surplus will now be a $500-million deficit. THE CANADIAN PRESS/Jason Franso

Dean Bennett  The Canadian PressAlberta Premier Jim Prentice says oil prices have plunged so far so fast that this year’s projected budget surplus will now be a $500-million deficit.

And he says while his advisers expect oil to rebound slowly over the coming years, the budget may remain in deficit until 2018.

“It’s the most serious fiscal circumstance we’ve seen in a generation in this province,” Prentice said in an interview Thursday.

“Things have turned so dramatically that we’ve gone from a $1.5-billion surplus in November to what looks like a $500-million deficit based on today’s projections.

'Canada Is In Serious Trouble' As Debt, House Prices Climb,

Daniel Tencer | Huff

It was little more than a year ago that Deutsche Bank declared Canada’s housing market to be the most overvalued in the world, and on Thursday the German-based bank doubled down on its bearish assessment of Canada.

Residential real estate in Canada is overvalued by 63 per cent, according to research from Deutsche Bank chief international economist Torsten Slok.

Canada Household debt hits record high

Credit cards are displayed in Montreal on December 12, 2012. A sustained period of low interest rates has allowed Canadians to rack up record levels of debt which, along with tumbling oil prices, pose a threat to the country's financial stability, economists say. THE CANADIAN PRESS/Ryan Remiorz

Alexandra Posadzki CPA sustained period of low interest rates has allowed Canadians to rack up record levels of debt which, along with tumbling oil prices, pose a threat to the country’s financial stability, economists say.

The total amount of credit market debt — which includes mortgages, non-mortgage loans and consumer credit — held by Canadian households hit a record high in the third quarter, climbing to 162.6 per cent of disposable income from a revised 161.5 per cent in the second quarter.

That means Canadians owed about $1.63 for every dollar of disposable income, according to the latest figures from Statistics Canada.

“The Bank of Canada has a lot on its plate in terms of assessing risk to the Canadian economy,” Leslie Preston, an economist at TD Economics, said in a note.

New Reports Shows Average Canadian owes $20, 891 in consumer debt

A lineup of consumer credit cards. Elise Amendola/AP 

The Canadian Press
Canadians continue to pile on debt and now collectively owe more than $1.5 trillion, according to the latest figures from Equifax Canada.

The consumer credit rating agency says the level at the end of the third quarter was up 7.4 per cent from $1.409 trillion a year ago.

Nearly two-thirds of the total owed, or $985.1 billion, is mortgage debt.

Excluding mortgages, the average debt held by Canadians stands at $20,891.

The auto loan and installment loan sectors showed the most significant increases, at 6.8 and 5.8 per cent year-over-year respectively.

“Following a frenzied start to the festive shopping season with more to come in the countdown to Christmas, we can expect the consumer debt to rise even further,” said Regina Malina, senior director of decision insights at Equifax Canada.