Well to be honest I cannot say I’m surprised. Today CTV reported the Bank of Canada Governor is expressing alarm as information shows Canadians are now carrying more debt than Americans for the first time in 12 years. The debt-to-income ratio is a record high of 148.1% in the third quarter. This isn’t new news because they reported last quarter it was high. This quarter is 5% points higher. You’ve gotta be kidding me. Just shows people don’t give a crap about debt and they just aren’t getting it.
So why is this happening? People think the low interest rates are going to last forever, well I’ve got news, it won’t. Everyone is trying to keep pace with everyone else. “Oh Frank just bought a new car, I must by a new car too!”. “Susanne just bought a new condo, oh we should buy one too”. Maybe it’s not quite like that but people who are full of status and and just have to have that new thing are just not getting it. Its funny cause I see all the time where people buy a new pair of jeans or that fancy new purse and they use their credit card that is already close to maxed to buy it. You’ve gotta be kidding me, your a slave to your credit card and yet your buying new things you honestly don’t need? Same thing can be said for vehicles, TV’s, computers, etc..
Not that I wish anyone ill will but I’d almost like to see an increase in interest rates so that people could just see the effect it would have. Maybe then people will learn? I highly doubt it.
Anyway if you think your not affected by this get honest with yourself because your probably included in these stats.