The Bank of Canada is concerned about Canadian debt. Many Canadians are taking out debts other than mortgages, using their homes as collateral.
The fact that Canadians are in debt is fantastic. Let’s face it, those who are going to make the most money will do it by using other people’s money, and taking on debt like mortgages outside of their own home; smart debt.
But the fact that the average Canadian has over $25,000 in debt outside of mortgages makes me want to vomit. Knowing as well that it will take YEARS for those people to climb out of that level of debt, it amazes me that people take on debt so willingly to impress their friends, neighbours, family and sometimes to make themselves just feel better or worthy. It’s a sad state of affairs we’ve got ourselves in.
This article makes an important point, that with oober low interest rates right now people, and with people borderline being able to carry the payments, things don’t look good for the future. Shouldn’t Canadian’s minds be still very fresh with the awareness that we were lucky enough to not get nailed with the sub-prime bottom out in the US? And yet, we continue to spend money without being entitled to it. Such and interesting phenomena.