Is the article alluding to personal indebtedness through
credit card borrowing as one of the sources of the Canada - wide debt?
«With tax cuts still to be felt, consumer demand - already robust on the back of a declining savings ratio and
increased credit card borrowing - looks set to be fair.
If people do not have enough income at the prime of their careers to
avoid credit card borrowing or pay off credit card debt, what is going to happen when they stop working and have much less income?
The surge in
credit card borrowing comes as credit card default rates are gradually rising, albeit from low levels, and may reflect the fact that it has become harder for consumers to borrow against the value of their homes, both because home values have fallen in many markets and because mortgage lending standards have tightened.
«Marcus offers an option for consumers who are searching for a simpler alternative to
credit card borrowing, where rates can change and multiple fees can be charged,» said Harit Talwar, who is leading the initiative for Goldman Sachs.
This effectively makes
your credit card a borrowing facility — which can be very useful for managing cashflow if done sensibly.
As well, auto loans and
credit card borrowing may well be too readily available for a segment of the population that is overstretched.