Last week, Canadian debt levels hit new highs. We now owe just about $1.65 for every dollar of disposable income we bring in (according to Stats Can last week). Can you guess what that number was in the 1980's for example? Just 66 cents for every dollar that we brought in. Why? Interest rates were in the double digits and having debt was expensive, not to mention a four letter word (as it should be). Canadians were saving more and competing for mortgage burning parties with their friends and neighbours.
I hear it all the time from individuals across the country - money is cheap. Why shouldn't I buy my dream house now, renovate it till it's perfect and check all the boxes on my bucket list before I'm fifty?
One answer. We still have to pay it back. And, if and when interest rates move, even a little, that cheap money will feel like a heavy burden to pay.
Join me on Friday morning, September18th on 630 Ched with Ryan Jesepersen as we discuss mounting debt levels, why even with this "cheap money" that should be paid off fast, 1/4 of Canadians are living paycheque to paycheque (BMO reported last week) and more seniors are retiring with a mortgage. Tune in and call or text us with your questions.
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