Canadians are among the most profligate spenders in the developed world, a new report says.
Helped by rock-bottom interest rates, consumers have been borrowing at unprecedented levels and now owe a record $1.41-trillion, putting Canada in the number one spot among OECD nations in terms of consumer debt to financial assets, says a study by the Certified General Accountants Association of Canada.
That equates to $41,740 for every individual man, woman and child, or about 2.5 times the level of debt in 1989.
Particularly remarkable is that much of this borrowing took place over the past two years when the country was still in the grip of one of the worst economic downturns in 50 years, the report said.
This may be unheard of for the generation of 2010 but here it goes: STOP SPENDING MORE THAN YOU EARN. (Note: Don't follow the examples of world governments.)
While it may be true that hardly anybody does this anymore, you will find it very liberating. You might not be able to get the super-deluxe cable package, you might have to give up your 3 Blackberries, you might have to trade in the Envoy for a minivan, but trust me; the feeling of freedom that comes with having no debt is priceless.