Speaking at the Chamber of Commerce in Yellowknife, Stephen Poloz, Governor of the
Bank of Canada stated it succinctly, Canadian household debt has surpassed $2 trillion. That’s more than $54,000 per person. This is Canada’s Personal Debt Crisis. $2 trillion can be difficult to fathom. It is often broken down and described in terms
easier to comprehend. Comparing debt to disposable income (how much
income is left after taxes) Can help paint a more clear picture. Canadians, on average, owe roughly $1.70 for
every dollar of disposable income. Poloz describes this figure as A rise of 70% in 20 years should be enough
to give everyone pause. Of course, there are some who are debt free, and others who have their debt well under control. Consider that more than 20% of that $2 trillion
in household debt is owed by only 8% of Canadian households. A recent Global News article highlights just
how little financial wiggle room many Canadians have. It is not surprising that the current economy
is affecting the way Canadians live their day to day lives. Several factors including a skyrocketing housing
market, the failure of wages to keep pace with inflation and increased personal debt
have collaborated to greatly impact quality of life. Homeownership used to be a life milestone
that was looked at as almost a foregone conclusion. One would graduate, get a job, get married
and buy a home. In August 2017, Maclean’s Magazine ran a headline
which bluntly stated the new reality. The article goes on to say: In order to escape debt, many Canadians will
need to delay, or even forego, the dream of owning a home Research has
verified what most already know to be true. Being in debt greatly affects the important
decisions in life. Those with significant debt are far more likely
to put off marriage or having children It remains to be seen just how many aspects
of life will be affected as debt continues to soar. Breaking free from debt requires taking a
close look at our activities, our habits and our priorities. It is important to note that there are factors
beyond one’s immediate control that affect their debt situation, purchasing power and
quality of life. Not every debt is the
result of poor decisions. Yet the fact remains that, much of the debt
people find themselves burdened with is the result wanting the latest piece of technology or the bigger house, the faster car and designer clothes. King Solomon wrote about the folly of materialism. For many, enough is just never enough. If your priorities are material, ask yourself
if those physical items are really the key to a productive and happy life. Debt and stress often go hand in hand. That momentary rush from a new purchase may
quickly be replaced with anxiety, worry and fear if it results in greater debt. While it is not the only factor at play, One
of the keys to escaping debt is Contentment does not mean we don’t strive
to improve ourselves or our economic situation. Learning to be content is the vital key to
escaping the personal debt crisis. For Tomorrow’s World Viewpoint
I’m Michael Heykoop Subscribe and click the notification bell to receive updates about new content. Visit TomorrowsWorld.org for more articles, telecasts and booklets.