Canadian’s leads the world in….. debt?

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15 Responses

  1. alana says:

    To the folks that have debt sorry to say but I for one can wait for the crash. I started investing this year and have maxed out my TFSA and RRSP investing mainly in ETFs. I’m hoping the market cools down over the next year or two so I can grab some more ETFs and possibly some bank stock on the cheap at the beginning of my investing journey, then watch my balance grow over time. It’s gonna suck for people with debt but for those with the resources to invest, a crash is the best time to make a killing in the markets.

  2. PCI –

    Very informative article and being able to connect that on a personal level. A very nice read for us US investors/residents. Would you mind doing a quarterly update on the markets in Canada going forward? I think it would add a nice element!

    -Lanny

  3. Debt by itself is not bad. It is an engine of economic growth. As long as you have the necessary economic activity to service the debt, it’s all good. The problem is governments (specifically state) tend to take huge amount of debts to pay off existing obligations or to fund crazy dream projects. How is going to pay it of?

    Let me finish of with this quote:
    “Credit has the ability to build a modern economy, but lack of credit has the ability to destroy it, swiftly and absolutely”
    dividendgeek2045 recently posted…10-Year Dividend Growers with dividend increase (Dec 04 – Dec 08)My Profile

    • Good quote. Yeah government debt is a whole nother story. This is personal debt.. if people are buying assets with the debt, their net worth shojld increase. This seems to show alot of bad debt.

      • I guess it is the same. Any debt which does not lead to any development is useless. For e.g. buying a car might help you save time. Which could then be invested for an additional gig to earn extra money. Probably a Honda civic might be sufficient for this. But if you decide to get a Ferrari and are unable to service debt … that’s a problem.

        The only way to fix this problem is through financial education (as you mentioned). School kids get STEM education but no finance education.
        dividendgeek2045 recently posted…10-Year Dividend Growers with dividend increase (Dec 04 – Dec 08)My Profile

  4. Leo T. Ly says:

    In terms of debt, our household debt is about 400% of our income. If you look at this number, you may cringe. Fortunately, I borrow to invest rather than for consumption. If I eliminate all of my investment debts, my numbers will go down to 100%. The debt ratio may look bad, I wouldn’t make any conclusion until I see the assets.
    Leo T. Ly recently posted…The Best Holiday Gifts To Give YourselfMy Profile

    • Hey leo. Its true, you were one of the ones who convinced me to refinance for investing. But most likely our net worths are going up while the stats say the average net worth is going down. I have no problem with positive debt for assets.
      Cheers

  5. May says:

    I don’t have any debts at this moment, not even a mortgage. But it’s not necessarily a good thing. I am also waiting for a market crash and my plan is to borrow from my heloc account and invest in equities.

  6. Cris says:

    Recently I got around this site…
    http://www.macleans.ca/economy/economicanalysis/the-most-important-economic-charts-to-watch-in-2018/

    All the charts suggest that a bad time is coming….

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