16 Jul 2015
Éric Lebel
Partner | CPA, CA, CIRP, LIT | Recovery and reorganization

In an interview on the Argent channel, Trustee Partner and Financial Recovery Advisor Éric Lebel shed light on the question of indebtedness in Quebec. He also offered some tips for smart borrowing.

Quebec household debt: should we be alarmed?

The figures show that Quebecers are increasingly in debt. The CROP survey entitled Les Québécois et les finances personnelles (Quebecers and personal finances), commissioned by Raymond Chabot Grant Thornton, reveals that 56% of Quebecers saw their debt increase over the past three years. However, for Éric Lebel, the increase in household debt is less alarming than it appears. “It’s normal that people have more debt because they have more assets,” he says.

The real problem isn’t debt, but overindebtedness, Éric Lebel explains. “Quebec has a population of 8.2 million, with 41,000 financial problem cases. Ontario has a population of 13.5 million but also has 41,000 cases (…) this is cause for concern. ”

Knowing the difference between good and bad debts

“A large portion of household debt comes from mortgages,” Éric Lebel explains. “There are also a lot of consumer loans,” he adds. According to a recent study published by BMO and cited by Mr. Lebel, one out of three Canadians regrets they are unable to control their useless and spontaneous spending. “Many Canadians who want to improve their financial position don’t know where to begin,” he explains.

Knowing the difference between good and bad debts is essential, according to Éric Lebel. The expert suggests accounting for several criteria when contracting a loan. “You must look at the interest rate and the term of the loan, and ask whether you have the budget to do this,” he explains. During the interview, Eric Lebel gives several concrete examples for a better understanding of the subtle distinctions between good and bad debts.

16 Jul 2015  |  Written by :

Mr. Lebel is a partner at RCGT. He is your expert in Recovery and Reorganization for the Brossard...

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