Canadians' consumer debt increased in the final quarter of last year, but there was a surprising drop in the amount borrowed on credit cards, a credit analysis firm says.
TransUnion said average total debt per Canadian consumer, excluding mortgages, was $25,709 in the fourth quarter of 2010 -- up 5.6 per cent from $24,346 in the comparable period of 2009.
Only a small portion of the total in either year was drawn on credit cards, which usually charge among the highest rates of interest.
The surprise, according to TransUnion, was that the average credit card debt in the fourth quarter of 2010 dropped by 2.7 per cent from a year earlier to $3,688.
Lines of credit were the biggest form of consumer debt tracked, and increased to nearly $34,000 -- up 8.8 per cent over the year.
Auto loans were the second-biggest form of non-mortgage debt tracked by the report, and TransUnion found the Canadian average rose to nearly $16,200 per borrower in the fourth quarter, up 11 per cent from a year earlier.
How much debt are you carrying on credit cards? Do you move debt from credit cards to lines of credit to avoid the high interest rates? Let us know in the comments.
With files from the Canadian Press
(This survey is not scientific. It is based on readers' responses.)
A merger between TMX Group, operator of the Toronto Stock Exchange, and the London Stock Exchange Group would create the world's biggest exchange operator for mining and energy stocks. (TMX Group)
By CBC News
The TMX Group, operator of the Toronto Stock Exchange and the Toronto Venture Exchange, has agreed to merge with the London Stock Exchange Group.
The merger would create the world's biggest exchange operator for mining and energy stocks, which have been key drivers of growth for both companies.
"The deal must be approved by regulators and TMX would have to change a key rule that prevents any one person or company owning more than 10 per cent of the TSX group," CBC's Mike Hornbrook reported.
Tom Caldwell, chairman of Caldwell Financial and a past governor of the Toronto Stock Exchange, welcomed the news.
He told CBC's The Lang & O'Leary Exchange on Tuesday that a merger would give a listed company in Toronto access to an easy market listing in London.
"That would be really outstanding because I could bring in more investors from Europe, the Middle East, et cetera."
A slew of RRSP commercials have been appearing on television lately, which can mean only thing: the March 1 deadline for Canadians to make RRSP contributions for the 2010 tax season is fast approaching.
Figures from last year show that, as usual, most people didn't make a contribution. The number of Canadians who contributed to an RRSP in the 2009 tax year actually fell about four per cent from the previous year to 5,967,000 -- about a quarter of all tax filers.
That could be because there's growing competition for Canadians' disposable income. Household debt is at an all-time high, so debt paydown is a top priority for many. Tax-free savings accounts are entering their third year of existence and are grabbing an ever bigger share of the investing pie. And a significant group of Canadians say they've just got no cash to spare for RRSPs.
And perhaps some Canadians are just plain confused about all the different savings plans and strategies available to them. For information on what's out there, check out CBCNews.ca's RRSP season primer. Do you contribute to an RRSP or TFSA? How do you invest your money? Let us know in the comments below.
(This survey is not scientific. It is based on readers' responses.)
A study commissioned by the Canada Revenue Agency suggests Canadians
are confused about the rules regarding tax-free savings accounts
(TFSAs), The Canadian Press reports.
Focus-group
research conducted by Sage Research Corp. reveals that 72,000 Canadians
were forced to pay tax bills last June after learning they had violated
a key restriction on TFSAs.
The unexpected bills arose when
Canadians took money out of their tax-free savings accounts in 2009,
then replaced it in the same year. Putting back withdrawn money in the
same year is considered an "over-contribution" and is against Canada
Revenue Agency rules.
The Sage Research Corp. study reveals that Canadians had little awareness about the TFSA rules, and also demonstrated that focus-group participants found the revenue agency's website too difficult to navigate.
-With files from The Canadian Press
Have
you ever set up a TFSA? Do you find the Canada Revenue Agency website
hard to use? Take our survey and share your experiences in the comments
section below.
(This survey is not scientific. It is based on readers' responses.)
More than three million Canadians took advantage of the Home Renovation Tax Credit (HRTC), according to a statement posted on the Revenue Canada website.
Finance Minister Jim Flaherty introduced the one-year tax credit in 2009 as a means of stimulating the economy by encouraging Canadians to spend money on their homes.
In a statement issued today, the Harper government is calling the tax relief initiative a success for pumping $4.3 billion into the Canadian economy. Canadians who took advantage of the HRTC also saved $700 on average.
-With files from The Canadian Press
Did you take advantage of the HRTC to make home renovations? Share your stories in our comments below.
(This survey is not scientific. It is based on readers' responses.)
Canada's mortgage industry association says tougher mortgage qualification standards introduced last April have worked to reduce Canadian debt, and may have made the stricter rules outlined this week unnecessary.
A report by the Canadian Association of Accredited Mortgage Professionals says new standards implemented last year have disqualified potential borrowers who would have otherwise entered the market.
Among many changes implemented in April 2010 was a requirement that all borrowers must be approved for a five-year fixed-rate mortgage, whether they opt to obtain a mortgage on those terms or not.
The intent was to ensure that Canadians weren't getting in over their heads in debt, Finance Minister Jim Flaherty said at the time. He has since tightened the standards further by banning CMHC-insured mortgages of more than 30 years.
CAAMP says the move may be unnecessary because the April changes have already had an effect. Canadians' housing debt ratio has edged down to 28.2 per cent in the second half of the year from 28.9 per cent for the full year, the group said Wednesday. Read more.
Do you know the full extent of your debt, and can you tackle it before it gets out of control? What are you doing to reduce your debtload? Take our survey and let us know your strategy in the comments section below.
(This is not a scientific survey. It is based on readers' responses).
Groupon, the fast-growing coupon website that offers daily deals to subscribers, is reportedly preparing to issue shares on the stock market, with an estimated value of at least $50 million US.
The online discounts business received proposals from investments bankers this week, according to the Wall Street Journal.
Just last month, Groupon reportedly rejected a $6-billion buyout bid from Google Inc.
An international public stock offering debut is reportedly set for the spring.
Based in Chicago and launched in 2008, the deal-of-the day website is the most prominent in the electronic coupons market, boasting more than 50 million registered users in hundreds of local markets around the world.
Are you finding yourself using coupons more often than before? Are we experiencing a return to the days of the coupon clipper? Share your tips on saving in the conversation below and take our survey.
(This survey is not scientific. It is based on readers' responses.)
U.S. retailer Target said Thursday it is buying Canadian discount retail chain Zellers from Hudson's Bay Co. for $1.8 billion.
Under terms of the deal, Zellers locations will continue to exist under that brand name for "a period of time," HBC said in a release. But Target will open 100 to 150 Canadian locations in 2013 and 2014 and assign the rest of Zellers' current network of 220 stores to other retailers.
"This transaction provides attractive long-term value and will allow us to invest substantial capital into our department store and specialty store businesses to continue to drive growth," HBC governor Richard Baker said in a release.
The sale of these leasehold interests is estimated to create over 20,000 net new jobs in Canada and has the potential to generate over $1.5 billion in Canadian economic activity through the renovation of Zellers locations, the release said.
More than a third of Canadians say they'll need to keep working to pay the bills after they retire, a survey suggests.
The survey conducted by Harris/Decima on behalf of Scotiabank indicates nearly 70 per cent of Canadians plan to work after retirement. Thirty-eight per cent of those surveyed said they'll be working out of financial necessary.
Seventy-two per cent of respondents said they intend to work to remain mentally active, while 57 per cent said they'd work to stay socially active during retirement. Five per cent of respondents said they are counting on a lottery win to see them through their retirement years.
The Harris/Decima survey was conducted between Oct. 14 and 25. The sample size was 1,011, which results in a margin of error of 3.08 per cent 19 times out of 20. Read more. Do you plan to keep working after you retire? Are you retired but still working? What advice do you have for people saving for their retirement? Let us know in the comments section below.
(This survey is not scientific. It is based on readers' responses.)
(This survey is not scientific. It is based on readers' responses.)
Former prime minister Brian Mulroney, left, and Michael Wilson go over the federal budget in the PM's office in 1991. Mulroney used a little-known provision in the Constitution to stack the upper chamber with eight extra Tory members to help pass the GST legislation. (Ron Poling/Canadian Press) By CBC News
The GST turns 20 on Jan.1 and despite years of taking criticism for implementing the controversial and unpopular tax, former prime minister Brian Mulroney says he would do it all over again if he had to.
"Quite frankly, it's interesting to me to sit back many years later, having had to endure the abuse and recriminations and the pounding, and to see that it's turned out well for Canada," Mulroney told The Canadian Press in a lengthy interview. "That's all I wanted."
The seven per cent goods and services tax was created to replace a hidden 13.5 per cent manufacturers sales tax that was seen as unsustainable. The Liberal-dominated Senate had refused to ratify the new tax measure, which led Mulroney to use a little-known provision in the Constitution to stack the upper chamber with eight extra Tory members. After months of contentious debate, the Senate passed the GST legislation, and the new tax went into effect Jan.1, 1991.
The tax was highly unpopular but economists insist Mulroney made the right decision.. Many economists say taxing consumption helps to generate the large revenues needed to reduce national deficits. It also allows governments to reduce income taxes, giving workers an added incentive to put in longer hours and seek higher-paying jobs, thereby increasing output.
"Most economists agree to varying degrees," said Bank of Montreal deputy chief economist Douglas Porter. "I happen to think it was one of the better moves by federal governments in recent decades." With files from The Canadian Press
CBCNews.ca community members engaged in a spirited debate over the merits and necessity of enacting the GST two decades ago.
CAB123 sided with the economic argument for this type of taxation. "Although the vast majority of us really hate the GST, regardless of their political affiliation, implementing it was a good decision from a government's stand point."
Gunner1954 agreed, saying it was a "necessary evil" that got rid of the manufacturing tax.
Teacup Tootsie believed the GST was a "good move" because an "up front, in-your-face-tax always is," but had some harsh experiences working in retail at the time the new tax came into effect. "It was nearly three years before someone stopped hurling insults at me on a daily basis. It was so bad I would hand out my MP's phone [number] and suggest this was the person to shout at -- not the person behind the till."
However, many CBCNews.ca readers argued that the GST was not a good measure, and still begrudge Mulroney.
"We still have deficit and we still have GST," wrote jackbrian. "Guess it was another boondoogle solution by politicians that only know how to spend tax payers' money into deficits and borrow over $850 billion to run deficits for the last 30 odd years."
Resologist said the problem with the GST is that it hurts the consumer. "Previous to the introduction of the GST, the manufacturing taxes were often included in the price of goods, whether the goods were purchased by consumers or businesses. Everyone paid. Now, businesses can deduct any GST paid as credits against any GST that they've collected; so, only the consumer pays. Is it any wonder that businesses (which have not had to pay their share of the old taxes and benefit from it), praise the continued imposition of the GST and HST upon consumers?"
Community member GERETIRED agrees with the concept of a value-added consumption tax but thinks the GST was "poorly sold" and "implemented at the wrong time."
"I firmly believe that we should have a substantial increase in GST! Wait now, don't get too excited! The increase should be offset by a reduction in personal income tax that would make it neutral to most of the middle class that pay most of the taxes in this country and lower for the poor." Let's continue the conversation. Do you think the implementation of the GST 20 years ago was the right move at the time? Let us know in the comments below.
(This survey is not scientific. It is based on readers' responses.)
Canadians' consumer debt increased in the final quarter of last year, but there was a surprising drop in the amount borrowed on credit cards, a credit analysis firm says. TransUnion said average total debt per Canadian consumer, excluding mortgages,... Continue reading this post
A merger between TMX Group, operator of the Toronto Stock Exchange, and the London Stock Exchange Group would create the world's biggest exchange operator for mining and energy stocks. (TMX Group) By CBC NewsThe TMX Group, operator of the... Continue reading this post
A slew of RRSP commercials have been appearing on television lately, which can mean only thing: the March 1 deadline for Canadians to make RRSP contributions for the 2010 tax season is fast approaching.Figures from last year show that, as... Continue reading this post
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