Canadians' Debt Load Increasing Through Recession?

This afternoon I was reading a Maclean's article (admittedly from 3 months ago) that described how Canada is virtually the only country in the world whose citizens added on more debt over the last two recessionary years. This increase came in the form of higher mortgage principals and larger balances being carried on credit cards and lines of credit. I always like to believe that most Canadians are - like me - fairly conservative when it comes to finances compared to our Wild West neighbours to the south, but this article highlighted how that's just not proving to be true at the moment.

Now, I can think of a few mitigating circumstances that might explain some of those increases in forms more defensible than simple runaway spending. First, the renovation tax credits that were made available in 2009 no doubt provided a good incentive for some debt to be taken on toward improving many Canadians' home (a reasonable, strategic decision). Also, some may have been forced to either pile on line of credit expenses or take out a second mortgage on their home when faced with a job loss or reduced hours courtesy of the recession. And finally, budding entrepreneurs, many of them created by the current downturn, are no doubt taking on new debt in the hopes of realizing revenue from those loans over the long run.

However, I can't help but worry that there may be some of my countrymen and women out there who are simply continuing to live like there's no tomorrow, much as the Americans did right up to the collapse of their economy two years ago. As an incurable saver, I can't relate to that attitude at all; but it's starting to look like Vicki and I may be exceptions in that regard.