Here is an interesting article by Derek Abma in the Financial Post on a CIBC World Markets report about household debt slowing. It seems that for the six months that ended in March there has been a slowing of household debt. This is good news but are we out of the water yet? I would say ‘no’ to that.
We have to remember that we were in the deep end with personal debt just six months ago as a nation. So before we collectively exhale and say ‘all is good’ I say beware and be careful! The Vanier Institute reported in their 2009 State of Family Finances report that Canadians owed $1.45 for every dollar they made. It is certainly going to take more than a few months to turn this around. So while I applaud all of us for curbing our appetite for debt, I would also say let’s please all of us move forward cautiously. I am interested in your thoughts. Are we in the clear or not?
Click here for the full article.
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we are far from in the clear, as so many of us don’t really understand the whole concept of money, and figuring out how to manage it. I see clients regularly who are surprised when they find out how much a given debt is costing them, and the credit card companies wre the culprits, with the small regular monthly payments they ask for, letting them rake in hte interest income for longer than necessary. We will always have overlaoded debtors, but with education and some control of the industry, things will improve, but not real soon. It’s not how much you manage to make, but how you manage what you make, that really matters!
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