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Mainly Mattias

How big is your..

103 posts in this topic

...DEBT?

Does it keep you awake at night?

http://www.cbc.ca/ne...rd-paydown.html

On Wednesday, Bank of Canada governor Mark Carney will announce if he's going to raise, lower or keep interest rates at one per cent, and people with high debts are worried rates could rise.

Diane Fisher has racked up $33,000 in debt after moving to Kemptville when she remarried, and she said she worries about how she's going to pay it off. (CBC)

The average Canadian is now more than $26,000 in debt, excluding mortgages. A higher interest rate would make it harder to pay that debt down.

Diana Fisher, 44, moved from the city to Kemptville, Ont., after getting remarried. But as a freelance writer, she found it hard to get enough work.

Soon enough, she racked up a $27,000 line of credit and another $6,000 in credit card debt.

"It actually keeps me awake at night," Fisher said. "I'm flipping around trying to figure out how I'm going to pay that off.

"For me it was a car purchase. And Christmas every year is a little bit out of control I think because we've got five daughters and they all need stuff, so we tend to save it until Christmas and then buy them the furniture or whatever it is they need. We helped a daughter buy a car this year. Just little things here and there, and helping one pay for OSAP. It just adds up."Scott McBride, a finance instructor at Algonquin College, said the average Canadian's debt is reaching historic highs. (CBC)

Fisher has acquired debt and then paid it off in the past. This time, she said, her plan is to work harder to find more freelance work, sell some household items, and spend less.

Scott McBride, a finance instructor at Algonquin College, said Canadians are faring almost as bad as people in the U.S. and the UK.

"It raises some level of concern because we're at historic highs," he said.

"Recent data was showing that debt level to income is at around 155 per cent (in Canada), which is quite significant. … We're awfully, awfully close to other countries that have had a miserable time in looking at their own debt or credit crisis situations," said McBride.

"So we have to at least be aware of the possible consequences of having debt, both on a national level … and on an individual level."

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Zero.

And for those who think Canadas massive personal debt load (higher than US when the crash happened) doesnt affect them. Start thinking taxes, taxpayer backed mortgages through the CHMC etc

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$3000

$2000 to Visa, $1000 to a family member

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no debt, no cc debt, no car payments, no mortgage.

If your house is worth a million but is 90% payed for then you still have debt and interest.

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Still zero. My mortgage is roughly 40% of the value of my house as it sits.

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Rent is actually reasonable in GVRD.

Especially when you compare the cost of "owning" or more precisely renting from the bank.

The price of housing has inflated because of cheap borrowing cost. This encourages people to spend beyond their means using borrowed money to buy houses they cant afford then using the "unrealized equity" in the house to borrow using HELoCs.

Canada and Vancouver in particular has a debt crisis thats about to blow up.

Add to that ~50% of baby boomers have less than $100,000 saved for retirement with most of their "retirement fund" tied up in deflating, illiquid home equity.

Zero.

Own my condo. No student loans. No car payment.

Actually saved up a nice chunk of money already.

I don't understand debt. The woman in the OP's post says she has XXXXX amount of debt and then in the next sentence talks about Christmas being crazy and having 5 kids. if you have 5 kids, spend money like an idiot on Christams and have a low income; you deserve to be in debt. You're an idiot. Everybody just wants to live over there means.

Same with the idiots I hear complaining about living costs in DT Vancouver being to high for the average Joe. Hello! The rent didn't jump overnight. It's been trending upwards for like a decade. If you wanted to live in a 3000 dollar a month condo and have a nice car you should have went to school and got an education/job that allows you to live DT. I don't want to hear about some idiot who got his grade 11, ended up being a security guard bitching about not being able to live DT. you aren't allowed. That's life.

It comes down to people not living in reality and understanding the world they live in. Be more cautious of your situation. no education and barely making payments? Don't have kids. If you can't afford it - Don't buy/spend it. if you want it, work for it and buy it. It's a fairly simple idea.

Cliffs:

Hate poor people.

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Rent is actually reasonable in GVRD.

Especially when you compare the cost of "owning" or more precisely renting from the bank.

The price of housing has inflated because of cheap borrowing cost. This encourages people to spend beyond their means using borrowed money to buy houses they cant afford then using the "unrealized equity" in the house to borrow using HELoCs.

Canada and Vancouver in particular has a debt crisis thats about to blow up.

Add to that ~50% of baby boomers have less than $100,000 saved for retirement with most of their "retirement fund" tied up in deflating, illiquid home equity.

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Debt is debt and everyone will have some at some point in their life. Better it be as a result of a good investment like a home rather than be money lost to partying.

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This is a huge problem in the GTA as well. It's like dealing with the California housing market all over again. Soon as government eases standards on borrowing and keep interest rates unjustifiably low it was a guarantee this would happen.

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Debt is debt and everyone will have some at some point in their life. Better it be as a result of a good investment like a home rather than be money lost to partying.

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