Pay Up or Get Out: MACLEANS

When did things change so drastically? Debt used to be a dirty word in Canada. Yet, over the past few decades it seems it's become necessary to survival. I found this article in the most recent issue of MACLEANS magazine. It discusses the reality of debt in the average, middle class, Canadian lifestyle.
According to the article's author, Jason Kirby, in the past "people spent years saving to buy a house and keep their mortgages to a minimum, and families that did find themselves in hock scrimped and saved to fight their way out. But, starting in the 1990's our attitude to debt changed. As interest rates fell and soaring house prices made everyone feel richer, our nation of savers became a nation of borrowers".
The article goes on to point out that Canadians are now in more debt than their southern neighbours! The average debt carried by Canadian households has jumped by a staggering 71% since 1990.
The good news? The recent economic downturn has exposed the unrealistic lifestyles many Canadians have been trying to live and will hopefully bring forth more responsible borrowing and debt loads. And who knows? We may even begin to save again...

Click HERE to read the full article...

Comments

Popular Posts