Canadians are still rising in debt, but there are some encouraging news on credit. Canadians began to repay credit cards. This is based on a recent report from Equifax Canada.
The report pointed out that last year (2011), Canadians' average credit card debt decreased by 3.4%.
But this is a downside. Many Canadians are using their credit line to repay credit card debt, which is directly linked to the equity they own at home.
Equifax spokesperson Nadim Abdo expressed concern. Paying higher interest rate credit card bills at lower interest rate credits makes sense, but there may still be bumps.
"We are still at a high level of debt. If there is a 50 basis point interest rate adjustment ... we will see an increase in defaults and bankruptcies," Abdo said.
According to the Equifax report, Canadians have an average consumer debt of $6,000, which has increased by 4.5% since the end of 2010. In addition, it has been pointed out that the growth rate is slowing - between 2009 and 2010, the average Canadian consumer debt was 7.7%. Lewis Johnson, a professor of finance at Queen's University, said that the decline in credit card debt marks the end of people's thinking about how to spend.
"This seems to be an explosion of reason. You can transfer the credit card balance from 24% interest to the credit limit, 3 or 4 Johnson each time,
according to Statistics Canada, third quarter of 2011 Consumption of durable consumer goods, including household appliances and automobiles, fell by 4%.
The world economy may also affect Canada's debt levels, and the continuing crisis in Europe and China's economic slowdown may also generate debt levels in Canada. Impact
If the Canadian job market is affected, your credit line may also be affected
Is it worth it? In addition to finding other sources of low-risk credit card debt, yes, at least for now, using credit lines, It is usually the Prime Minister plus one and a half, depending on the bank, and it makes sense, and this week when the 2.99 mortgage rate of three or four years is announced, interest rates seem to be lower for the foreseeable future. 19659002] For more valuable information, visit http://www.prudentcreditrepair.ca
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Orignal From: Use your credit line to pay your credit card balance? Is it good or bad?
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