The situation of debts in Canada has given a cause to worry as every day, commentators, economist, bankers, mortgage companies express concerns on the debts pilling up immeasurably and this debts of Canadian households is drastically becoming a persuasive topic in media houses, but still this hasn’t stopped the increasing number in which Canadians indulge in debts and this bad personal finance habit has ensnared a lot of Canadians as most of them are trapped in serious debts.
Canadians have found being in serious debts normal as it is now so accepted in the society as to a “New norm” and this is reflected on the Canadian’s regular data releases as household debt to income statistic shows 23% increase from a decade ago.
Also according to the Bank of Canada, most of the high ratio mortgages can be traced to Toronto were borrowers with loan-to-income ratios are in excess of 450 per cent. Though many of the clients can be attributed as middle class people owning a home with a good job and look really admirable, is disheartening to realize that it’s all based on bad financial decisions and a lump of debts which can also emerge as a result of large tax arrears.
There are a lot of debts e.g. a teacher with eight payday loans, a senior financial analyst with 7 credit cards with high balances in a chartered bank, a TTC driver with two mortgages and $1000,000 in unsecured line of credit, all these are just a few of debts Canadians are faced with.
These were supposed to be the extreme end of spectrum but in Canada, being in debt is as good as normal. Households and employed individuals in Canada living in decent homes find themselves facing serious or insurmountable debts and this leads to outright bankruptcy and life is becoming unaffordable for many Canadians with debts as they battle with great temptations to spend meanwhile access to debts is cheap and easy.