CGA-Canada warned that many individuals are unaware of how the economic downturn has hit their financial situation, and they continue to load up their credit cards and lines of credit while skimping on savings.

According to the association's report, a consumer survey in November indicated 85 per cent of households had outstanding debt on a credit card.

And 21 per cent of Canadians who were in debt said they could no longer manage their debt load.

Forty-nine per cent of families with children under 18 said their debt had increased in the past three years, according to the online survey of more than 2,000 households.

Lines of credit and credit cards account for the largest proportion of consumer debt, and the report says the escalation of debt is primarily caused by consumption motives rather than asset accumulation.

One-quarter of those interviewed would not be able to handle an unforeseen expense of $5,000, and one in 10 would have trouble with an unforeseen cost of $500.

The report says Canadian personal indebtedness is a highly disturbing matter and prospects are low for improving household financial security.

Personal lines of credit expanded to a new high of $181 billion outstanding in April, an increase of 6.2 per cent year-to-date, and up 20.4 per cent from a year earlier. This type of debt has bloated from $100 billion five years ago and less than $50 billion at the start of the decade.

Personal loans from banks totaled $48.5 billion, up 8.1 per cent from a year earlier, and bank credit-card receivables were up 8.9 per cent at $51.5 billion.