Calgary Has Highest Household Debt in Canada

[broken_legs]

http://www.ctv.ca/generic/generated/...le1640442.html

Want to boost your net worth? Live in a mid-sized city

Which Canadian cities posted the biggest jump in household net worth last year? Toronto? Vancouver? Montreal?

Try Quebec City, Winnipeg, Halifax and Saskatoon. Each of these cities saw household net worth jump by nearly 10 per cent in 2009, according to WealthScapes 2010, a national survey of household financial statistics. Residents in these cities are doing the best job at managing their debt loads while continuing to invest, said Catherine Pearson, vice-president of Environics Analytics, the company behind WealthScapes.

Canada’s commercial hubs, on the other hand, posted net worth growth that hovered around or below the national average of 6.7 per cent. Vancouver, with its pricey real estate, managed to hold on to the title of the city with the highest net worth, but this doesn’t seem likely to last long. Its net worth growth rate was among the lowest of the large cities, at 3.1 per cent.

Calgary’s average household income, at $119,681, was $23,000 higher than any other city, but don’t be misled: The average household in Calgary had $184,850 dollars of debt. That’s nearly $25,000 more than Vancouver, and more than double Montreal.

“Last year we saw that [people in Calgary] were continuing to behave as if there was a boom,” Ms. Pearson said.

The data shows we make 23,000 more, but have 25,000 more debt. That's almost 1-1 increase in debt per dollar earned.

Whadduh Y'all think?

[mr2mike]

Not surprised. I see it in friends too. Dropping money on things I know they can't really afford.
I know someone who refiananced their house to buy a home theater sound system and a new 52" flat screen.

Living within your means sucks when everyone around you is spend, spend, spend. But I try to keep in mind on my more secure financial future and the goals I've got.

[inline6turbo]

Yup that doesn't suprise me one bit. Half the people I know in their mid twenties would rather live at home, with two lines of credit, zero investments or savings and spend their paycheques on rims or clothes. I was like that up until about a year ago. Then I opened up a GIC and RSP and locked my LOCs to help myself in the long run and get myself on track to paying everything off in the next year. So far it's going well

[Cos]

Also lots of people in those places bought houses for 128,000 that are now worth in the 300,000's. Most people in Calgary had to buy in the 300,000's or have sold their 128k place and moved up.

Places like saskatoon will slowly see debt increase as people move there and buy expensive housing.

However Mr2Mike is right also.

[Tik-Tok]

That must include mortgage debt? If so, I could see how we're higher, than say Vancouver, as most of it's population rents. (according to statscan, in 2006 53% households were rentals VS 35% in Calgary)

[inline6turbo]

Originally posted by Tik-Tok
That must include mortgage debt? If so, I could see how we're higher, than say Vancouver, as most of it's population rents. (according to statscan, in 2006 53% households were rentals VS 35% in Calgary)

That is interesting, I didn't know that. I can imagine in smaller cities it's even lower.

[A790]

Does that debt figure include a mortgage? If so, I'm WAY higher than everyone hahahahaha.

[msommers]

It's expensive to keep up with the Jones'

[D'z Nutz]

Yeah that doesn't really surprise me. Calgary has become a very materialistic city in the past few years (but then again so has society in general). For some reason, everyone always feels they have to keep up with everyone else, even if it's just appearances. We see it on the forums even. Too many people spend too much time trying to impress people they don't know or will ever meet. Unfortunately for most people, they are willing to put themselves in debt and live off credit to keep up with the charade and be a part of the "in" crowd.

Pretty sad.

[tirebob]

Originally posted by inline6turbo
Yup that doesn't suprise me one bit. Half the people I know in their mid twenties would rather live at home, with two lines of credit, zero investments or savings and spend their paycheques on rims or clothes.

Hey.... No need to hate on the rim buyers!!!

[Sugarphreak]

...

[kaput]

.

[Tik-Tok]

Originally posted by kaput
Wow, I would be a king if I moved to the east!

Yep. Our mech's in Halifax make the same money as we do here, only their cost of living is so low, they make out like bandits compared to me

[inline6turbo]

But they live in Halifax... fair trade :p

[masoncgy]

This does not surprise me at all. You see the 'spend, spend, spend' attitude right here in the many threads of Beyond.

I have a buddy who is moving into his 3rd new home in 3 years... he just keeps increasing his mortgage... and all in the name of appearing to have money.

I'm so glad I'm not like the average Calgarian. I like my money in my bank account, not in the hands of retailers, etc.

[max_boost]

Ya gotta pay to play. Ya gotta try to keep up. Keep the pimp hand strong playa!

[Speed_69]

Originally posted by inline6turbo
Yup that doesn't suprise me one bit. Half the people I know in their mid twenties would rather live at home, with two lines of credit, zero investments or savings and spend their paycheques on rims or clothes. I was like that up until about a year ago. Then I opened up a GIC and RSP and locked my LOCs to help myself in the long run and get myself on track to paying everything off in the next year. So far it's going well

I know exactly what you mean. Friends going out and buying new BMW's, Mercedes-Benz's and Lexus vehicles while they're still living at home. Makes absolutely no sense to me. Sure it's nice to be driving a nice vehicle when you're young because you want to impress girls or whatever but I find it stupid when you can't even afford to live on your own without the parents.

[nissanK]

Originally posted by msommers
It's expensive to keep up with the Jones'

Guess what, the Jones's are BROKE. That's the problem!

Originally posted by masoncgy

I have a buddy who is moving into his 3rd new home in 3 years... he just keeps increasing his mortgage... and all in the name of APPEARING to have money.

Hit the nail on the head right there. It's all about image in this city unfortunatly.

I hate the idea of knowing that I could be one missed payment from loosing everything. Buying with cash only and living within your means takes a huge load of stress off. When I look at my TV, it's mine, paid for, done. No one can take it away.

[GoChris]

Damn, I don't make enough to be average

[sputnik]

Originally posted by GoChris
Damn, I don't make enough to be average

Most households are comprised of 2 incomes.