Question for Canadians... | The Coffeehouse

Jason I

OK, my wife and I occasionally watch a show produced in Canada where the host does some sort of a financial make-over of a person/couple after going over how bad their finances really are. It's a little cheezy, but it does have its moments.

One thing we've noticed is, with the people involved, there is usually a LOT of bank line of credit debt, but not much credit card debt. But, in the states, it seems like the bulk of a lot our debt is credit card, not line of credit.

My question to you is, is this a norm in Canada? More line-of-credit debt than Credit Card debt? Or has the TV show picked people with high line-of-credit debt?

Just curious.

wisemx
Live it

note: Before people here go nuts on U.S. credit I want to mention there is a positive movement here.
Speaking for our own house, the lovely wife and I have no credit card debt.
When they send CC's to us in the mail we destroy them.
From my own interactions with others I think this is a current wave across the U.S.

phreaks

In reply to wisemx

#Sep 21st, 2008 @ 7:34 AM

Probably not a good idea for a student or younger person that hasn't yet established their credit-worthiness.

Having no credit in the USA is just as bad or possibly even worse than having bad credit.

It's an issue that ought to be addressed, but sadly it won't be because the entire system is broken.

Jason I

In reply to phreaks

#Sep 21st, 2008 @ 9:04 AM

As an FYI - I'm not trying to start some complaint/flame war about US consumer debt (although it would be easy). I really would love to know about the "lines of credit" issued by Banks in Canada. I think, specifically, the show is filmed in Toronto.

It just seemed to me that everyone there had some line of credit, and in one case the "financial investigator" (whatever that is) suggested to a couple that they get a line of credit from a bank to consolidate things, and I don't think these people had a house.

That just seemed a lot different than in the US (where it's hard to get a line of credit with a house, let alone without one). Credit cards offers, on the other hand, come by the boatload to our house. I think we get about 8 a week, and I'm not exagerating.

evildictaitor
if( !succeed( try() ) ) { while(true) try(); }

In reply to Jason I

#Sep 21st, 2008 @ 2:06 PM

There's no way you'll get an unsecured loan at the moment, what with the whole market failures of last week, so I'm not sure that his advice was very good...

With regards to your credit-card swarm - surely you have to agree to a long list of terms and conditions before you can start using the credit card, so why are they sending you the credit card before you signed anything?

Harlequin
http://twitter.com/TrueHarlequin

In reply to Jason I

#Sep 21st, 2008 @ 2:06 PM

Line of credits are also in lei of "loans", which banks don't really do much anymore here in Canada. If you need $5k to do something and you have a good credit rating, they'll open up a $5k credit line for ya, give you a bank card and you're set.

Jason I

In reply to evildictaitor

#Sep 21st, 2008 @ 2:20 PM

My mistake - they were sending me offers, not actual cards.. But, for all practical purposes, I could have the card in 48 hours.

But, were Lines of Credit the norm in Canada, as opposed to credit cards? Say, a couple of years ago? I guess I'm asking, two years ago, if you needed some money for purchases, where would be the first thing you'd *think* to go to? A credit card or a line of credit? Was one easier to get? or did one offer more benefits (lower APR etc.?)

Thanks in advance, guys.