Debt dilemma

Canadian household debt grew 5% in the first quarter of 2013 and we’re not paying it off terribly quickly.



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  • A new poll for BMO suggests some 83% of Canadians have some form of debt (including mortgages), up from 74% from at the same time last year. Average monthly payments meanwhile are down from $1,138 in 2012 to $986. “With Canadian household debt levels remaining at dangerously high levels, we have to wonder why so many Canadians are making lower monthly debt re-payments.  When interest rates are low, as they currently are, Canadians need to do more than just make the minimum payment each month.  Consumers need to take advantage of our current economic climate and put more effort towards retiring their debt,” said Consolidated Credit’s Jeffrey Schwartz in a release Wednesday.
  • Meanwhile, a poll for TD Canada Trust has found that 40% of recent post-graduate students find it difficult to make minimum repayments on student loans in the first two years after graduating. As a result, many admit to postponing a number of life milestones, including buying a first home (40%), starting a family (36%), getting married (23%) and even moving out of their family home (18%), until student debts are repaid.

2 comments on “Debt dilemma

  1. Read this in context from the article: "recent post-graduate students.. admit to postponing… buying a first home." Duh! Only in Canada would somebody except to graduate and then go out and buy a home ASAP. But that's what we're telling kids is normal nowadays. "Hey kid! We know you already owe a ton of money from school, but you'd better run out, get a mortgage, and buy a freakin' house so you can have kids. Stay in debt the rest of your life, because that's what everyone else is doing." It's crazy. We have to seriously rethink our social conditioning.


    • Hi Edward,

      I couldn't agree more with what you are saying. It seems like society wants to keep us in debt so that they can continue with business as usual. And like you have alluded to, it is only in Canada that people expected to graduate and then start getting everything at once after they have completed school. We have forgotten that it is always best to live within once means and learn how to be content.
      Thank you so much for your post.



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