Canadians carry most household debt in G20

[wulfie68]

Even recession didn't slow down Canadian's spending, report finds - Yahoo! Canada News

When I read this, I was a little surprised and a little concerned. The number doesn't seem that extreme in some ways, $41,740 is far below one year's average household income, but its per person, not household. I've read reports for years about how our relative tax burdens have increased and how our standard of living fluctuated compared to that of other industrialized nations but this puts an exclamation point on it. Are we, as a society, capable of living within our means? Are we as consumption oriented as many of us believe others to be (like the Americans), but thought we weren't?

It also kind of hits on something I have noticed with my wife: she's a spender, I'm a saver. Its how we were both raised and how our adult lives have played out as well. Sometimes our differeing outlooks clash but I think in the end we're better for it, especially compared to if we both were spendthrifts.

 

[TenPenny]

My wife and I are both savers, neither of us likes debt, so we have none.

 

[#juan]

We don't have any debt but someone who has just bought a house in say, Vancouver, might be buried in debt. My son and his wife agreed that they wouldn't have children and they would both work until their house was paid off, Took them almost six years. We now have two new grandchildren.

 

[Avro]

We don't have any debt but someone who has just bought a house in say, Vancouver, might be buried in debt. My son and his wife agreed that they wouldn't have children and they would both work until their house was paid off, Took them almost six years. We now have two new grandchildren.

That's the story I like to hear. Disidpline and hard work, you should be proud of them.

 

[SirJosephPorter]

The reason Canadians are willing to take on more debt may be that economic downturn hasn’t really hit hard in Canada. If Canadians feel better about their prospects than Americans do, they would be willing to borrow more.

As to saving, it is better to have at least one partner who is a saver. A spender marrying another spender is a recipe for disaster. In our case, we are both savers, we have always lived way below our means. We don’t have any debt.

 

[AnnaG]

Kids are a terrible habit. We owe a few thousand on the card for education, yet. A couple more months and it'll be gone. Kid #2 still wants her Master's deg. but she's working so she can pay for it. That leaves us with our own projects and spoiling the grandson.

 

[ironsides]

It snuck up upon you. You are exactly like us believe it or not. We don't find it to bad, so don't worry about it. It is just something we have known for years. Takes all types to make a nation.

 

[prairieboy]

My wife and I are both savers, neither of us likes debt, so we have none.

We are the same, paid off student loans first year, paid off home 4 years later. Living debt free for last 9 years. No credit cards. Cash only.(maybe a little old fashioned but it works for me).:canada::canada:

 

[Avro]

We are the same, paid off student loans first year, paid off home 4 years later. Living debt free for last 9 years. No credit cards. Cash only.(maybe a little old fashioned but it works for me).:canada::canada:

Good, live within your means.:canada:

 

[TenPenny]

Good, live within your means.:canada:

Having parents who lived through the depression makes you aware of how important it is to live within your means. Sadly, many adults today have never talked to anyone who experienced such things. Having people banging on the door in the morning, asking if they can work the farm all day for one meal. Or if there are any scraps or garbage they could eat.

I know a couple who emigrated from Holland to Canada after WW2. Their description of the masses of people starving is hard to believe - in the 1940s, in a pretty modern developed country, people literally had nothing to eat. Nothing.

If you talk to people like that, it reminds you to plan for your future, you really don't know what's up ahead.

 

[SirJosephPorter]

We are the same, paid off student loans first year, paid off home 4 years later. Living debt free for last 9 years. No credit cards. Cash only.(maybe a little old fashioned but it works for me).:canada::canada:

Credit card has certain advantages over cash (I personally don’t like debit cards; I think they are a big ripoff). With credit card, you get interest free loan, provided you pay the bill in the allotted time. Also, you need a credit card to rent a car. Many hotels want to see a major credit card when you check in.

Also, if you get air mile card, you get 1 air mile for each dollar you spend. Air miles accumulate fast, and you can get free trips. I visited my cousin in Omaha last month on a free ticket (actually it is not totally free; it costs a little less than half the price). Next month I am visiting England, again on a free plane ticket.

So we use credit cards almost exclusively. However, we have one cardinal rule. If we are not prepared to pay cash for something, we don’t use credit card. Credit card must be used as convenience only, and not as a source of free money.

Incidentally did you use to participate on canada.com forum? I remember a praireboy there.