WATCH ABOVE: Household debt in Alberta is tens of thousands above the national average. Kendra Slugoski looks into why that is.
EDMONTON — A BMO report shows household debt in Alberta has exploded over the past year.
According to the report, Alberta’s household debt increased to $124,838 in 2014, up 40 percent from the previous year, and the highest in the country.
“Albertans are facing serious consequences if they continue to increase their reliance on debt,” said Jeff Schwartz of Consolidated Credit Counseling Services of Canada.
“We have all seen the roller coaster economy in Alberta. A sudden job loss or reduction in income could seriously impact their ability to service their debts.”
The study also shows 50 per cent of Albertans carry credit-card debt; 53 per cent have mortgage debt; and 17 per cent have student loan debt.
“These statistics take into account homeowners and those people who don’t own a home,” said Schwartz. “Also, we must consider that these are just averages. So, that means there are a lot of Albertans who are dealing with a lot more than $125,000 in debt.”
Those nearing retirement age are in particularly danger, he said, because their incomes will soon decline, but debt-servicing costs will remain the same.
Consolidated Credit Counseling Services of Canada offers several tips:
Average Household Debt:
Province 2013 2014 % change
Alberta $89,026 $124,838 40.2
British Columbia $79,089 $99,834 26.2
Manitoba/Saskatchewan $82,100 $68,437 -16.6
Ontario $76,970 $67,507 -12.3
Quebec $56,860 $59,805 5.2
Atlantic Canada $47,237 $64,120 35.7
National average $72,045 $76,140 5.7