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Here you will come to know about impact of consumer credit on the economy with the help of websites, videos and images.
Consumers nowadays are availing credits for many purposes like household, businesses, personal loans etc. Even in our country, it act as a big issue as well. Through all my work here, you will be able to understand that how economic growth is related to the credit.

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Website #1 Bank Of Canada: Credit and its impact on economy

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Website #1 Bank Of Canada: Credit and its impact on economy

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This website expresses the data about the credit conditions being provided by the Bank Of Canada. In this, there are different types of credit like: household, businesses and monetary aggregates.
Bank Of Canada provides data regarding these credits in the form of  monthly financial statements. Bank monitors the regulation in the country such as :

Changes in credit conditions

The money supply in the country.

Financial system liquidity

Other money market instruments traded in the market.

The credit conditions reflected by the monetary policy as well as financial conditions express changes in the economy itself.

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This website brings together statistics and graphs that were previously available in several different places.

To meet its mandate, the Bank carefully monitors changes in credit conditions, the money supply, financial system liquidity, as well as in other credit-market indicators such as the issuance of bonds and money-market instruments, among many other indicators.

These reflect changes in the economy, the influence of monetary policy, and financial market conditions.

Related information:

IMPORTANT NOTE

Since this website was launched on 23 April 2009, approximately 35 data series have been revised or refactored. This accounts for some discrepancies between the original data and the updated data as shown currently.

Over the course of 2011 household credit, business credit, and the monetary aggregates were affected by International Financial Reporting Standards (IFRS).

As of 2 May 2016, data found on Household Credit, Business Credit, and Monetary Aggregates will be updated monthly. These updates will typically occur during the fourth week of each month.

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Bank of Canada - Credit Conditions - About Credit Conditions

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This website brings together statistics and graphs that were previously available in several different places. To meet its mandate, the Bank carefully monitors changes in credit conditions, the money supply, financial system liquidity, as well as in other credit-market indicators such as the issuance of bonds and money-market instruments, among many other indicators.

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Website #2 Banks contributing the economy

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Website #2 Banks contributing the economy

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This website expresses how the banks are leading towards the Canadian Economy.
If we talk about the credit facilities, these banks benefiting the Canadians in many ways like:

Loan for purchasing houses.

Providing employment to millions of Canadians.

Saving for the retirement.

Providing dividend incomes.

By the taxes paid by the banks indirectly people are benefited.

Providing loans for establishing small businesses. etc.

These banks majorly provide loans to small and medium enterprises.
This would lead to economic growth of the country today as well in years to come. Sound banks facilitate major role in this.

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Strong, sound banks help families buy a home and save for retirement, help small businesses to grow and thrive, and help drive the economy, providing economic benefits to all Canadians today and into the future.

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Image #1 Relation between credit and economy

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Image #1 Relation between credit and economy

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In this image, comparison of credit to GDP ratio is being done in five countries.
If we talk about our economy, its average credits are not leading towards financial crises, but measures should be taken to curb the situation for bright future of the economy. While on other hand, China is also in danger of financial crises.

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relation between credit and economy of canada - Google Search

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Video #1 Correlation between bond market and economy

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Video #1 Correlation between bond market and economy

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This video expresses that how the bond market is related directly or indirectly with the growth of economy.
This video makes attention towards the rising interest rates in the bond markets, that led to fixation of the mortgage rates. But, unfortunately, due to rise in interest rates, on one hand, the bond market is shrinking.
Due to declining bond market, there is a strong adverse impact on the economy. The Canadian economy suffers a lot.
On other hand, Yield is also slowing down continuously, which is again a bad indicator for the economy.
The bond market is thus, influencing the economic parameters of the country and hinders its economic growth.

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Mortgage-holders unexpected beneficiaries of gloomy Canadian economy

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Video #2  Canada at risk of banking crisis..

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Video #2  Canada at risk of banking crisis..

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The video is about the financial crises that Canadian economy is going to suffer.
It emphasizes that no doubt debt is good to some extent in the country. But, too much debt in the economy is an alarming signal for the country. It also talks about economy of Hongkong and China.
It is said that no doubt, if money is borrowed by the people for the purpose of channelizing it to some productive purposes, it is a good indicator. but, this way, Debt to GDP ratio is very high, this is a challenging issue which should be taken care of as soon as possible by the Canadian Government. no doubt, measures are being taken already for this, hopefully it would be eradicated.

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Video #3 Global Slowdown: Economic Growth

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Video #3 Global Slowdown: Economic Growth

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This video expresses that due to global financial crises, even U.S. is being effected. In the same way, the Canadian economy growth has been slowed down.
The impact of global slowdown also affects negatively the country.
But Bank of Canada taking actions to cope up this. No doubt GDP is still 2%, consumer's higher interest rates lead affordability crises. The economy depends upon a lot of activities despite of this, global weakness recession , oil prices etc.
If all the global central banks join hands it would be curbed.
Banks are also doing well byclosely monitoring the economy by reviewing the monetary policies.

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Global Economy Threatens Canada's Growth Prospects, Economist Alexander Says

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Website #3 Impact Of Credit Rule Demographically

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Website #3 Impact Of Credit Rule Demographically

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This website expresses the impact of the credit rules as per demographics of the Canadian consumer on their credit requirements.
It provides recent data of the year 2019 of increase in credit balance as per the previous years'.
Due to sound Canadian credit market, there is significant as well as balanced growth across various regions. In this, population has been divided into 5 different groups on the basis of their year of birth. Data regarding their share in total credit as well as its impact on the economy is being provided. this depicts rise in debt of all the groups.
Due to increase in overall debt, in future there would be an expected downturn in the Canadian economy.

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A generational shift: Millennials now represent the same proportion of total consumer debt in Canada as Baby Boomers

The continued emergence of FinTech lenders: Increased lending to Millennials and Gen Z run parallel to the growth and greater penetration of FinTech lenders, especially for installment loans

Changing mortgage landscape: Bank lending across mortgages has continued to decline, in contrast to non-bank lending which has increased, albeit from a lower base

TORONTO, Aug. 20, 2019 (GLOBE NEWSWIRE) -- The newly released Q2 2019 TransUnion (NYSE: TRU) Industry Insights Report shows that overall consumer credit balances continued to grow in the second quarter-up 4.3% compared to the same period a year ago-bringing total outstanding consumer credit to $1.88 trillion. Over the last 12 months, the number of consumers with access to credit also grew, up 1.7% year-on-year (YoY) in Q2 2019.

Helped by the continued emergence of FinTech lenders and an increased focus by the whole lending market on subprime and near prime consumer segments, total balances for non-revolving credit products (primarily installment and auto loans but excluding mortgages) increased over the year. The average non-revolving balance per consumer grew 6.2% YoY to $31.4K in Q2 2019. At the same time, borrowing for revolving products (including credit cards and lines of credit) saw a slight drop, down 1.2% YoY to end Q2 2019 at $18.5K. Encouragingly, consumer-level delinquencies remained broadly stable across all major lending categories, the exception being installment loans where consumer-level delinquencies improved by 24 basis points.

"Buoyed by low unemployment and recent interest rate stability, consumers in Canada continue to build debt, particularly on auto and installment loans. And to date, consumers continue to do a good job of managing their debt levels, with delinquency rates stable over the past year. However, as the economy slows and risks of an economic downturn remain prevalent, it will be important for consumers to manage these higher debt levels diligently to remain current on their obligations," said Matt Fabian, director of financial services research and consulting for TransUnion Canada.

Originations, the measure of new accounts opened, were strongest for the Line of Credit category-up 13.9% YoY. Conversely, with the market still adjusting to new qualifying rules for mortgages, there was a decline in mortgage originations of 8.9% YoY in this key category. After the increased regulatory control came into force in January 2018, chartered bank lending in mortgages began to cool, while non-bank lending conversely grew. TransUnion's Industry Insights Report shows a drop in origination volume from the major banks of 9.8% during the 12 months ended Q1 2019, while secondary banks and credit unions-which are not subject to the new rules-saw a 2.1% increase in origination volume over the same period.
A generational coming-of-age and the continued emergence of FinTech lenders
As consumers mature through various stages of their lives and careers, their needs for various assets and expenditures evolve, including transportation, housing, and everyday purchases. Correspondingly, their borrowing requirements evolve as well. Q2 2019 marked a significant landmark for Millennials, as they became the age segment with the second-highest outstanding credit balances, behind Generation X.
Total Generational Borrowing as at end of Q2 2019 (1) Silent Generation: Born 1945 and before, Baby Boomers: Born 1946-1964, Generation X: Born 1965 - 1979, Millennials: Born 1980 - 1994, Gen Z: Born after 1994
During the quarter, Millennials (born 1980-1994) reached parity with Baby Boomers (born 1946-1964) in terms of outstanding debt-each with slightly over $500B in total debt. This trend represents a fundamental shift in generational lending, as banks and other institutions continue to adapt and evolve their business models to provide more options and more tailored customer experience for Millennials and Gen Z.
Q2 2019 Metrics for Major Credit Products (1) Originations are viewed one quarter in arrears to account for reporting lag.
(2) Serious delinquency rates are 90 or more days past due for credit cards and 60 or more days past due for all other credit products.
"At a headline level, the consumer credit market continues to grow. However, growth hasn't been uniform, and in major categories like mortgages, we continued to see a decline in origination volumes when compared to the same period a year ago," continued Fabian. "The shift in focus toward non-revolving credit products is something we've seen over recent quarters. The rise of Millennials, who have equaled and slightly surpassed Baby Boomers when looking at outstanding balances, is having a fundamental impact on the approach lenders take to how they market to and service their customers."

The report also reveals some caution in the market, as there has been a decline in the size of new credit limits, which suggests some pullback by lenders. The changes weren't uniform, as the average new limit issued for new credit cards and auto loans increased, while lines of credit, installment loans and mortgages decreased.
The continued shift in mortgage lending and the impact of mortgage legislation
In the hyper-competitive credit card market, against a backdrop of falling new card volumes (down 5.2% YoY), issuers have increased new card limits to better performing credit consumers-limits for credit cards to super prime consumers increased 12.8% while card limits issued to high risk subprime consumers fell 13.9% as lenders continue to risk balance their portfolios. Additionally, card issuers have been aggressive in extending credit limit increases to existing customers to offset slower growth in new accounts. There was a 3.7% YoY rise in overall card credit limits across all risk tiers in Q2 2019. Limits in the below-prime segments grew the most in percentage terms, with subprime and near-prime tiers seeing limit increases of 5.6% and 4.6%, respectively.

Across installment loans, the report shows increased participation from younger age cohorts, with consumers in Millennial and Gen Z segments taking on more installment loans. Conversely, the rate of loans issued to older consumer tiers has declined. This may be due to increased participation of FinTechs-lenders which originate solely through online channels and which focus heavily on personal installment loans. In other markets, including the U.S. where FinTechs have been operating for over a decade, FinTechs have proven successful in appealing to younger consumers and bringing them into the personal loan market by offering fast turnaround times and a positive customer experience.

The total number of open installment loans grew by 5.1% YoY in Q2 2019. The report also showed that originations by traditional lenders (major banks and credit unions) were flat YoY in the most recent quarter, while alternative lenders, including FinTechs, grew 34% over the prior year, albeit still relatively small in overall volume compared to traditional lending.
Regional variations
The report also looked at the mortgage market and observed a significant drop in originations in the most recent quarter, down 8.9% YoY. While the mortgage market is affected by multiple factors, including house price growth, longer-term consumer sentiment, interest rates and unemployment levels, there can be no doubt regulatory changes have had a material impact on the Canadian mortgage market since early 2018.

From a demographic perspective, the biggest erosion in mortgage originations has been among younger cohorts, led by the 18-25 segment, which saw a reduction of 13.4% in originations YoY. The new mortgage rules affect this group perhaps the most, as they will typically be starting their careers and have lower incomes relative to older cohorts. This limits both their ability to qualify under the mortgage stress test rules, as well as the size of mortgages they can obtain. In many of the major Canadian housing markets, many younger consumers have now been effectively priced out of buying.

"The new mortgage regulations seem to be having the intended effect in cooling the overheated housing market and broadly preventing consumers from overextending themselves with mortgage debt. This is now the fourth consecutive quarter we have seen a decline in both mortgage originations and balances. However, there are signs of some potentially unintended consequences. We have started to see an uptick in co-borrowing as the means of getting a foothold on the property ladder, where multiple consumers make an application together-in effect combining the power of their salaries. Although this is nothing new, it is now often with the help of a parent, other relative or a friend rather than just a partner or a spouse," said Fabian.
A cautious approach to a cooling economy
There continues to be significant regional variation in both credit demand and performance. Alberta continues to have the highest average non-mortgage credit debt per consumer at $37,048. This is likely due to higher demand for credit in this region in recent years resulting from the effects of lower oil prices on the resource-dependent province, as well as a series of natural disasters that have affected large areas of Alberta.

Volatility in the oil sector and its effect on employment have impacted delinquencies as well. In Alberta and Saskatchewan, there were YoY increases in consumer-level non-mortgage delinquency rates to 6.6% (+21 bps) and 6.8% (+37 bps), respectively, in Q2 2019. There has also been an increase in revolving balances, which in down markets can be an indicator of borrowing to finance day-to-day expenses.

British Columbia and Ontario rank second and third highest for average non-mortgage borrowing per consumer at $33,516 and $31,888 respectively. This is likely driven by a combination of a higher cost of living in the large metropolitan areas in each province, as well as the effect of significant recent housing cost increases, which can impact consumer disposable income and increase reliance on borrowing.

Although the Canadian consumer credit market continues to look sound, with overall delinquency rates remaining broadly stable, there are significant variations in origination and balance growth across regions, categories and risk tiers.

"As concerns continue about the prospect and timing of an economic downturn, the Canadian consumer credit market remains generally resilient. The continued increase in overall lending is now at a slightly slower pace than in previous quarters, suggesting that consumers and lenders may be exercising some caution. Despite data showing a cooling economy, strong job growth and accelerating wages continue to mitigate the pressure on household finances and prevent a softening in consumer credit demand. That said, a future downturn in economic growth will put pressure on credit consumers and may affect delinquency rates, especially in more vulnerable regions of Canada." concluded Fabian.

More information about the TransUnion Canada Industry Insights Report, including details about a variety of credit products, can be found here. Among the details are more information about balance and delinquency trends, including for auto loans, installment loans, lines of credit and mortgage loans. Please visit the following website to register for TransUnion's Q2 2019 Industry Insights Report webinar scheduled for August 27 at 2 pm ET.

TransUnion CreditVision score risk tier segment definitions: subprime = 300-639; near prime = 640-719; prime = 720-759; prime plus = 760-799; super prime = 800+

About the TransUnion Canada Industry Insights Report
TransUnion's Canada Industry Insights Report is an in-depth, full credit-active population-based solution that provides statistical information every quarter from TransUnion's national consumer credit database, aggregated across virtually every active credit file on record. Each file contains hundreds of credit variables that illustrate consumer credit usage and performance. By leveraging the Industry Insights Report, institutions across a variety of industries can analyze market dynamics over an entire business cycle, helping to understand consumer behavior over time and across different geographic locations throughout Canada. Businesses can access more details about and subscribe to the Industry Insights Report.

About TransUnion (NYSE: TRU)
Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion reaches consumers and businesses in more than 30 countries around the world on five continents. Based in Burlington, Ontario, TransUnion Canada provides local service and support throughout Canada. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide. We call this Information for Good. Visit www.transunion.ca to learn more.

For more information or to request an interview, contact:
Aabida Dhanji, Ketchum
aabida.dhanji@ketchum.com
416-355-7424

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Impact of Mortgage Rules and Shifting Demographics Continue to Shape the Canadian Consumer Credit Market

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A generational shift : Millennials now represent the same proportion of total consumer debt in Canada as Baby Boomers The continued emergence of FinTech lenders: Increased lending to Millennials and Gen Z run parallel to the growth and greater penetration of FinTech lenders, especially for installment loans Changing mortgage landscape: Bank lending across mortgages has continued to decline, in contrast to non-bank lending which has increased, albeit from a lower base TORONTO, Aug.

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Website#4  New Credit Card Rules In Quebec: Its Impact..

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Website#4  New Credit Card Rules In Quebec: Its Impact..

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The website is about new credit card rules in Quebec of Canada, so as to tackle the rising threat level of household debts.
The minimum payment to be maintained is raised from 2% to 5%. In Canada, people are free to act on their own. There are no federal laws as such. But, this is a warning for the economy because the household debt to income ratio is expected to be doubled in the years to come, which would be a danger for the country.
The new rules framed for the credit cards would be able to curb the economy from this danger.

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(Adds comment from Credit Counselling Society)

By Kelsey Johnson

OTTAWA, Aug 2 (Reuters) - The Canadian province of Quebec has become the first in the country to require minimum credit card payments as legislators try to tackle rising household debt levels.

Effective Aug. 1, banks in Quebec must set a minimum payment of at least 2% of the balance owed on existing cards, the government said in a release. Under the new regulations, the minimum payment will gradually rise to 5% by 2025.

For new credit card contracts, the minimum payment cannot be less than 5%, the province said in a release.

The regulations also require banks and credit card companies to disclose the credit rate and applicable fees, as well as an estimated timeline for paying off the balance when a customer chooses to pay only the minimum.

Current Canadian household debt levels are unsustainable and must be addressed, said Gary Tymoschuk, vice president of operations for the Credit Counselling Society, a nonprofit group that helps Canadians in debt. "It's going to come crashing down at some point if we don't."

Quebec's measures, he added, will certainly force people to pay down debt. "It will have an impact in the right direction at least."

The new rules follow legislation passed by Quebec's previous Liberal government in 2017. The legislation was designed to reduce household debt by forcing consumers to pay off more than just the interest balance on their credit card.

Consumer spending accounts for about 60% of Canada's economy. In Canada there are no federal laws regulating minimum credit card payments - although provinces are free to act on their own. "I think that other governments are going to be looking at this very, very carefully and may already be doing so," Tymoschuk said when asked Friday whether more provinces might follow Quebec's lead.

"Collectively all governments are telling us, and have been for some time, now, that we have too much debt as a society here in Canada," he said, adding that the Bank of Canada has also warned it is concerned about Canadian debt levels.

Canada's economy has grown more sensitive to interest rates after household debt-to-income more than doubled since 1990 to 173%, which means that Canadians owe about C$1.70 for every dollar of disposable annual income.

In comparison, the savings rate has fallen to nearly its lowest in 14 years at 1.1%. (Reporting by Kelsey Johnson; editing by Jonathan Oatis)

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UPDATE 1-Quebec rolls out new credit card rules aimed at lowering high household debt

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(Adds comment from Credit Counselling Society) By Kelsey Johnson OTTAWA, Aug 2 (Reuters) - The Canadian province of Quebec has become the first in the country to require minimum credit card payments as legislators try to tackle rising household debt levels. Effective Aug.

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Image #2  Canada leading in household debt

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Image #2  Canada leading in household debt

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The image expresses a clear cut view regarding Canada acting as a leading economy in household debt all over the world.
In the year 2016,the household credit to GDP ratio is 107% , that depicts a warning signal for the economy.
Efforts are being made by the Banks as well as the Government to curb this situation for overall economic development of the country.

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impact of consumer credit on canada economy - Google Search

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Video #4  Canadians Going To Broke Due To High Interest Rates..

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Video #4  Canadians Going To Broke Due To High Interest Rates..

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This video expresses the impact of high interest rates on the Canadians.
It is found that the bankrupt activities and insolvencies were rising in the past year.
The Bank Of Canada states that measures are being taken to help the economy from rise in oil prices as well.
Later on, Central bank states that interest rates would be raised till the economy got neutral. That's why this year, in most populated provinces like Ontario etc. it is expected to get hiked interest rates.
As a result of this, there would be more insolvencies in the populated provinces of the country this year.

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More Canadians are going broke because of high interest rates

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While going for research of this topic, I watched a lot of videos, search various websites to gather data on Impact of credit on Canada. What is found most surprising is that the Canadian economy is in threat of debt risk. As being an international student, I was not very much aware of this fact. But, now i would like to contribute by managing my debts at least.

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As i being a student, after going through the condition of the economy, I would act as a civilised person by managing my credits well by maintaining the minimum balance as per the governing rules.
To suggest about this to my friends and peers, I would make my peers also aware of this. I would tell them about the global crises as well as tell about the impact of increasing debt to GDP so as to join hands to curb the situation. We can't contribute much, but at least one can make efforts for the same.