According to a new report from credit reporting agency TransUnion, non-mortgage debts are growing at their fastest rates in two years. CBC News turned to Assistant Professor Thomas Davidoff to investigate the implications for the larger economy.
In a televised interview, outside the Sauder School of Business, Davidoff explains why British Columbians are taking on more debt.
“People feel wealthy. They will directly borrow against their home, they will take on debt because they believe that they have the asset wealth to take care of it,” says Davidoff.
“Moreover, I believe people have not been getting the bonuses at year’s end they are accustomed to, salary growth hasn’t been there and that makes debt to make ordinary purchases more attractive.”
