Debt

  Canadians are now carrying more "bad" debt then ever before. In fact we have more debt to income than any other G7 country. Stats Canada says that we owe $1.68 for every $1.00 of disposable income! That's huge.

  My parents generation didn't believe in debt. Not really. You paid your mortgage and celebrated when the house was finally yours. Most bought used cars and it was rare for a family to have two. We rarely ate out and if we did it was a bucket of KFC in the summer at the beach. Vacations meant camping or day trips. Credit cards were not commonplace and if you wanted something you saved for it.

  Boy a lot has changed! Now we buy "starter homes" that we upgrade after five years to something much bigger and much more expensive. Most families have two cars and it is now the norm to buy your child a car when they turn 16. Take out is a way of life for many busy families. And vacations are all-inclusive's for the entire family during the winter and a cottage rental in the summer.

  Every single person I know has at least one credit card. Most three or more. And without even trying I can think of a hand full of people who have declared some form of bankruptcy at least once. Many people "supplement" their incomes with their Visa or Mastercard. 
  
  Even scarier than "young people" debt is that fact that now more than half of all Canadians retire with debt! Some with mortgages. Others are still paying off their kids education, or worse, their adult children's debts. And after years of instant gratification, baby boomers aren't able, or willing, to go without. Not even in the short term.

  So what does this say about us as a people? Are we greedy? Impatient? Has our keeping up with the Jones finally caught up to us? I can't speak for all Canadians but I will say it seems the line between "wants" and "needs" have really blurred. So much so we don't know the difference anymore.

  I hate to think what our kids finances will look like. They will learn from our example. And it sure looks like we aren't setting a great one.

  Some of us at least.

  Ang