The Province newspaper had a very interesting article over the weekend about consumer debt among B.C. residents. Here’s the (link).
According to the article, the average B.C. consumer has $37,879 in consumer (nonmortgage) debt. That’s 40 percent higher than the national average in Canada. In the U.S. there are a variety of studies that give different numbers, but the most common ones indicate the average American credit card debt is around $15,700 while consumer debt is around $22,000.
If B.C. consumer debt is that deep, it would seem a cutback in consumer spending is warranted. That could mean less spending in Whatcom County.
Figured as much. They have the same cocky, phony attitude Americans get right before a bubble crashes.
You have to remember that median household income in B.C. is about $70k compared to about $50k in the United States, and about $35k in Bellingham. The average B.C. resident carries about 1/3rd more consumer debt than the average American, but he also has about 1/3rd more income so his ratio of debt to income is about the same. The bottom line is that B.C. residents are just as able to service their debts as most Americans.
That’s not to say they haven’t got a problem, but the problem is no worse there than it is here. It’s not like they’re in a deeper hole than we are.
In fact, if Canadians are feeling a little pinched, it might benefit Bellingham if they come down here to save money.
Good points, Alex, I hadn’t considered their median income.
If they’re feeling a lot pinched, though, they may cut spending significantly, like what happened in the U.S. when the housing bubble/financial meltdown took place.