Canada And Credit Cards: Our Habits, Our Vices And Our Debt
Filed under: Budgeting & Planning, Credit Cards, Debt, Family Finances, Real Estate
Perhaps you haven't heard, but the government is tightening up the mortgage requirements. Finance Minister Jim Flaherty announced last week that mortgage rules are changing. The federal
government is reducing the maximum amortization period from 30 years to 25 years unless you're able to put down 20 per cent.
The Bank of Canada's Mark Carney supported the government's actions and issued another warning that Canadians are living on borrowed money and need to rein in their debt from a staggering $1.52 for every dollar earned.
We're living in a debt-ridden society and part of that reason is that we don't really understand how debt works. This includes credit cards. A recent poll from TD Canada Trust found that younger Ontarians (Ontario being a have-not province) aren't quite that savvy with their cards and digging themselves into debt.The survey showed:
• Not paying their credit card balance in full at the end of the month (53%)
• Making only the minimum monthly payment (35%)
• Using their credit card to supplement their income (22%)
• Missing a monthly payment (17%)
• Routinely maxing out one credit card and needing another as backup (14%)
So what are Canadians buying? Take a look at the gallery below:
government is reducing the maximum amortization period from 30 years to 25 years unless you're able to put down 20 per cent.The Bank of Canada's Mark Carney supported the government's actions and issued another warning that Canadians are living on borrowed money and need to rein in their debt from a staggering $1.52 for every dollar earned.
We're living in a debt-ridden society and part of that reason is that we don't really understand how debt works. This includes credit cards. A recent poll from TD Canada Trust found that younger Ontarians (Ontario being a have-not province) aren't quite that savvy with their cards and digging themselves into debt.The survey showed:
• Not paying their credit card balance in full at the end of the month (53%)
• Making only the minimum monthly payment (35%)
• Using their credit card to supplement their income (22%)
• Missing a monthly payment (17%)
• Routinely maxing out one credit card and needing another as backup (14%)
So what are Canadians buying? Take a look at the gallery below:
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This is probably the most occurring, and the most preventable cause of debt. Children need to become financially literate at a young age. We see the position that the majority of middle aged and senior population are in yet nothing is being done to help the younger generations. Put a requirement into the education program or a final exam or teach them at home. Somehow, some way, educate on this issue because unlike many other things it is preventable.
July 12 2012 at 8:21 PM Report abuse Permalink rate up rate down Reply
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