Despite warnings from Bank of Canada Governor about the unstable consumer debt load and the Canadian financial outlook, Canadians are piling on the debt. On average, the total Canadian debt load rose to $26,221 (excluding mortgages) in June of 2012. This is the highest amount ever since records have been tracked (since 2004).
The rise in debt loads is partially due to the hot housing market that Canada has been experiencing over the past decade. As homeowners continue to over-stretch their financials for large mortgages, they are finding themselves with little left for day-to-day expenses such as clothing, food, gas and utility bills. This is causing many Canadians to dip into their savings or heavily rely on credit cards.
As a direct result, the heavy debt load is putting pressure on Canadians and their credit scores. According to the credit bureau of Canada, the higher your debt load, the lower your credit score will be. Canadians need to be aware that lower personal credit scores can make it difficult for them to get future loans.
Some Canadians have piled on so much debt that they are finding it difficult to keep up with all the bill payments. Even one missed monthly payment can have a great impact on credit reports in Canada.
Now more than ever, Canadians are encouraged to take steps to ensure that their credit reports remain healthy and that information is accurate. The credit bureau in Canada offer many solutions to help consumers check their credit reports. The most convenient way is to obtain the credit report online from one of the main credit reporting agencies. For Canadians, they will need to contact only credit bureaus of Canada and avoid credit reporting agencies which offer solutions mainly targeted to US residents.
If you have never checked your credit report before, there is never a better time to do it. Credit reports in Canada can be obtained for free. It takes only a matter of minutes to fill out the forms and mail it. If you are finding that you are using your credit cards often, take a step to request for your credit reports and review them regularly.