Canadians are wealthier than ever

[Captain Awesome]

http://www.thestar.com/business/persona ... _says.html

Well, despite all the ever so popular doom and gloom talk, it turns out that life for Canadians is pretty good. The average net worth (what you own minus what you owe) is closing on $500K for an average household. And while half of it is locked in house equity, still lives plenty in savings and retirement accounts for an average household to retire comfortably.

[Woodenhead]

Statistics are like bikinis. What they reveal is intriguing, but what they hide is crucial.

[maryjane48]

Yea i read A Report Other day That said Canadians Have To Much Debt

[Static]

CDN's have the highest amount of household debt in relation to income. Home equity means squat until the equity is cash.

[Donald G]

I would think that mortgages on our overpriced houses and money owing on 0% car purchase loans from dealers is the reason for much of the debt. Just as the rising cost of our individual houses and new cars results in a rise in our net worth. Theoretically being 'worth' more does not make any difference in our standard of living unless we happen to sell a house in a high cost (more desirable) area and purchase a house in a low cost (less desirable) area ... which would likely adversely affect our over all lifestyle.

As soon as the interest rate rises there will be a lot of people being 'submerged' by their debt payments, in spite of their theoretical net worth.

[maryjane48]

yes that says it all don g

[Captain Awesome]

Yea i read A Report Other day That said Canadians Have To Much Debt

The article references net worth. Net worth is the amount of money you'd have if you take all of your assets (including the value of your home) and subtract all your liabilities (your debts and your mortgage). Yes, Canadian households have a lot of debt, but even with all this debt, their net worth is over $400,000 on average.

[John500]

Yes we are rich. Until the housing bubble pops. Then we are poor. Its that simple.