Why is it that Canadians are in record debt ? How is it that 50 years ago everything was paid for in cash and now household income to disposable debt is at 163.3%? I could be that debt is so easily accessible, and not difficult to qualify for. While at College or University, students can easily qualify for loans with government and student banking programs. I’ve now come to realize that there aren’t too many items you can’t finance these days:
- Building materials and supplies
- Boxed food programs
Deferred payment plans which are common with furniture and appliances are dangerous because they offer immediate gratification for not cost. However at the end of the term which is normally a year, if the account is not settled in full all accumulated interest is charged back to the consumer with an ongoing interest rate of normally 18-29%. When consumerism is made easy with the quick and easy ability to finance what we feel we need, it is easy to see how Canadians are getting into record debt!