Harper’s New Year’s resolution for Canadians: watch your debt levels

OTTAWA – Prime Minister Stephen Harper has a suggestion for Canadians looking for a New Year’s resolution for 2013: go easy on consumer debt.

Harper says that while most Canadians are living within their means, they need to think about what could happen if interest rates suddenly rise.

He says mortgage debt is primarily the driver behind high debt levels and the government is trying to do some things to encourage people not to borrow so much.

But he says he knows it’s a decision households need to make for themselves, and is encouraging Canadians to be cautious before taking on more debt.

Earlier this month, Statistics Canada said that Canadians owe more than $1.64, on average, for every dollar of after-tax income they earn.

Harper made the comments in a year-end interview with Global News national anchor Donna Friesen, which is set to air on Sunday.