Prince Edward Islanders spent eight per cent more than they earned in 2008, says a new report by the Atlantic Province Economic Council.
APEC senior economist David Chaundy told CBC News Friday that the spending could catch up with Islanders as the recession ends.
"At the moment interest rates are very low," said Chaundy.
"As we move out of the recession and into the recovery, especially the end of 2010 and into 2011, we'll see interest rates rising and therefore the cost of servicing that consumer debt will increase, which again might put some pressure on credit growth and consumer spending, and obviously there may be some implications for solvency for some individuals."
In addition to outspending their income, Islanders had zero net savings in 2008. APEC recorded consumer savings of about two per cent of their income in 2000.
