Canadian Debt Levels Are Higher Than Ever… But We’re Not Worried + MORE Feb 17th

This Tuesday, February 11, 2014, Finance Minister Jim Flaherty unveiled the 2014 federal budget. While the government is still focused on eliminating the country’s deficit – it’s currently projected to be about $2.9 billion this year – there are a few carrots for some Canadians in this latest rendition. Here’s our breakdown of what to look for from the government this year.
No Income Splitting… Ever?
First off, one anticipated budget item that didn’t actually the cut is income splitting. Income splitting, which would allow Canadian families to “share” up to $50,000 of income in order to reduce their marginal tax rate, was a key part of the Conservatives election campaign platform in 2011.
While not particularly fiscally conservative (the plan could cost federal coffers up to $2.5 billion in lost tax revenue), it’s intended to target the more socially conservative wing of the party’s support. Specifically: families with stay-at-home moms. Critics have argued that the program would only really benefit a small percentage of Canada’s wealthiest families, while offering no tax-savings for single-parent families, or those where both parents are working for comparable, modest salaries and having to pay for childcare…

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When it comes to financial goals, debt repayment is the top New Year’s Resolution for many Canadians. In a blog post I wrote just last month, I discussed how Ontarians are choosing debt over retirement savings. Despite the fact that we’re finally starting to listen to the Bank of Canada’s message that interest rates aren’t going to be low forever, Canadians keep piling on debt. Even if you want to repay your debt, it could take some people a few years or longer to get their debt fully paid off.
Consumer Debt Continues to Rise
The facts don’t lie – Canadians love spending. The household debt-to-income ratio hit a new high in the third quarter of 2013, reaching 163.7 per cent. Although it’s not the best measure of consumer debt, it shows that Canadians continue to take on debt, despite the warning bells.
A recent survey from Equifax paints an even bleaker picture. Consumer debt, including mortgages, in Canada totaled $1.422 trillion in the fourth quarter of 2013, according to credit rating service…

Energy prices are going nowhere but up. Home energy monitors are one way to help you find savings.