How Much You Are Worth?

Statistics Canada released 2006 annual report on Friday and Canada’s various sectors of the economy seem to be doing well. Each Canadian is worth $150,500, as national net worth reached $4.9 trillion. Here are some of the facts Stat Canada pointed out:

1. National net worth expanded by $131 billion – up 2.7%
2. Household net worth up strongly
3. Toronto Stock exchange closed at historical high in 2006
4. Residential real estate value continued to expand
5. Government net debt fell for a seventh consecutive quarter
   
6. Stronger growth in national wealth – national wealth grew 6.7% in
7. Vigorous growth in the value of minerals in 2006 was propelled by strong international demand

Everything looks good in this report good except one entry. This is how Stat Canada mentioned it – "Households continued to build up mortgage and consumer credit debt. As a result, household debt continued to outpace personal disposable income (seasonally adjusted at annual rates). Canadian households currently carry about $1.10 in debt for every dollar of their disposable income.”

In simple word, we are spending more than we make. Buy now Pay later culture is taking over the whole nation and it is high time we stop making purchases on credit. Please read my Don’t  Pay Off Your Credit  Cards article, which  was recently posted on  Canada’s Personal  Finance Website.  To  read the full  report  visit Statistics Canada  website.