The Canadian Consumer Credit Bubble Part 1

It is no secret that the Canadian consumer is more important to Canada's economy than ever before.

It is one of the main reasons why Canada rebounded from the recession so well.

Here we see that household debt has exploded by 307% since 1991.

This has been helped by falling interest rates.

And a falling savings rate.

But this is at a time when the average weekly wage has grown by 54% while inflation has grown by 41% since 1991.

And if we put it all together we see why the debt to income ratio is at alarming levels.

So why should Canadians be worried about high levels of houshold debt?
Stick around for Part 2.