I’ve been following the Household Debt debate on The Globe and Mail this week, and the numbers are staggering. Canada’s household debt-to-income ratio has risen from below 100 per cent in the mid-1990s to 151 per cent today.
Now the economists have been arguing whether this huge amount of debt is a threat to Canadian economy, the risk of interest rates from the Bank of Canada rising versus the boost to the economy of so many Canadians spending so much money etc. However I am more concerned just by the overall state of individual families in Canada – and how much pressure of debt we are currently living under. Considering Canadian families will have a mortgage, car loan, credit card bills and most likely student loan on top of it all, the thought that we can just live on credit and extend more credit to buy what we want whenever we want is quite scary!
I understand certain things are a necessity like your home – a roof over your head. Or an education – essential for job security and income for your future. But just how much do you plan to spend and do you have a plan to pay it all off in the future?
Check out the full debate over at The Globe and Mail.