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CKA Uber
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PostPosted: Wed May 19, 2010 1:31 pm
 


Filibuster Cartoons
Title: We're number one (in debt!) (click to view)
Date: May 18, 2010
According to a recent study released by the Certified General Accountants Association of Canada, Canadians are now the single-most personally in debt citizens of the western world. A grand total of 84% of us are in some form of credit card debt, 44% are paying off a car loan, and 40% have taken out a line of credit for something other than a house. 16% of all Canadians are paying off a student loan, which, considering the number of Canadians who hold university degrees or are in the process of doing so, probably represents upwards of 90% of the educated population.

In the international context, Canada's overall consumer debt-to-asset ratio is the highest of any industrialized nation. At 10%, we rank significantly above even other famously profligate nations like Greece (7.6%) and the US of A (7.2%). Here's a link to the full CGAAC report.

It's important to understand that we are talking about personal debt here, and not government debt. Politically, Canada is not doing that bad in the debt-to-GDP balancing act. According to this CIA chart, we are currently on the 20th most in-debt country in the world, with our public debt only representing a measly 72% of our gross domestic product, outshining Germany (77%), France (79%), Italy (115%), and perennial G7 loser Japan (192%). Behind the UK (68%) and the US (52%), though.

Regardless, be we politician or citizen, the common bond that unites all Canadians is apparently gleeful spending beyond our means.


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CKA Super Elite
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PostPosted: Wed May 19, 2010 1:40 pm
 


Quote:
A grand total of 84% of us are in some form of credit card debt


Check.

Quote:
44% are paying off a car loan


Check.

Quote:
40% have taken out a line of credit for something other than a house.


Check.

Quote:
16% of all Canadians are paying off a student loan


Check.

Quote:
Regardless, be we politician or citizen, the common bond that unites all Canadians is apparently gleeful spending beyond our means.


Not at all hard to spend beyond your means when the prices of damn near everything are grossly inflated.


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CKA Uber
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PostPosted: Wed May 19, 2010 2:17 pm
 


To be fair, the only reason so many Americans have less debt than you guys do is because they can't qualify for the credit in the first place. :lol:


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PostPosted: Wed May 19, 2010 2:36 pm
 


Building on what BartSimpson said above, I'm sure before the economy fell through in a few nations and everyone everywhere was getting bailed out, Canada was not in the very top grouping -- our relative success at warding off some aspects of the recession rather than everyone going bankrupt might show that at least a ton of us didn't get so far into debt that we drowned and had to be dug out. :D

Mind, when the paper takes a ton of comparisons between 2007 and 2010 there's bound to be some significant problems reported.

Still, crazy, crazy debt levels for most people to have to work themselves out of, to be sure, even before we all hit the crisis. Hope we don't end up going down the same path as our southerly neighbours and old parents across the pond did.


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CKA Uber
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PostPosted: Wed May 19, 2010 3:22 pm
 


Quote:
A grand total of 84% of us are in some form of credit card debt


Nope, it gets paid off each month.

Quote:
44% are paying off a car loan


Nope.

Quote:
40% have taken out a line of credit for something other than a house.


Nope.

Quote:
16% of all Canadians are paying off a student loan


Not any longer thank God.

Quote:
Regardless, be we politician or citizen, the common bond that unites all Canadians is apparently gleeful spending beyond our means.


That's not me either. I only buy something because I need it, not to keep up with the Joneses.

I'll admit I used to be have most of these as positive, but a couple years of hard work got them all paid off early and I will never go back to that again. Now, my extra cash is going into savings for the little ones college education and for the future, be it vacations or luxury items.

Looking around my subdivision, I can't believe the expensive toys some people have - RVs, boats, ATVs, fancy sports cars, etc. Some have two or more of that list! They must be in debt to their eyeballs. If and when I buy one of those items, it will be for cash (or damned close to it).


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CKA Uber
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PostPosted: Wed May 19, 2010 3:34 pm
 


Newsbot wrote:

Quote:
A grand total of 84% of us are in some form of credit card debt


No.

Quote:
44% are paying off a car loan


No. Car, truck, and trailer are paid for.

Quote:
40% have taken out a line of credit for something other than a house.


No.

Quote:
16% of all Canadians are paying off a student loan


no. I worked a lot of hours to graduate with about a thousand dollars on my credit card, which I paid off after getting a full time job.

Like Boots, I try not to buy anything I don't really need. That being said, I do like the occasional towy and since all I have left for debt is a very modest mortgage, I'll occasionally indulge myself. My one rule is, everything gets paid up front, or on a credit card to collect points, but always paid off in full. If I can't afford that, then I usually won't buy it.


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PostPosted: Wed May 19, 2010 4:15 pm
 


Holy crap, this answers a question I've had for awhile... God damn that's depressing.


Those who don't have debt are either rich or homeless.


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PostPosted: Wed May 19, 2010 4:17 pm
 


I owe 800 dollars on my credit card. My Student loan is paid off.

Mind, I've been wishing for a new pair of boots for about a year now.


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PostPosted: Wed May 19, 2010 4:17 pm
 


Gunnair wrote:
My one rule is, everything gets paid up front, or on a credit card to collect points, but always paid off in full. If I can't afford that, then I usually won't buy it.


I actually put everything I can on my card and then pay for it a month later. I get an interest free 30 day loan and at the end of the year, I get cash back from my VISA and AMEX (and no service fees whatsoever). Last year it was almost $1000 in total dividend payouts!

Debit IMHO, is for suckers. I laugh when I hear people say, but I only pay $9.95 a month for unlimited transactions! It just tells me that they have no discipline when it comes to spending.


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PostPosted: Wed May 19, 2010 4:20 pm
 


Mr_Canada wrote:
Those who don't have debt are either rich or homeless.


I'm not rich at all. Last year, I made less than $40,000.

It's called not buying everything you want all the time without being able to pay for it in the next month.


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CKA Uber
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PostPosted: Wed May 19, 2010 4:25 pm
 


No creditcard debts, no car payments, no student loan, no expensive toys either.


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PostPosted: Wed May 19, 2010 4:32 pm
 


bootlegga wrote:
Mr_Canada wrote:
Those who don't have debt are either rich or homeless.


I'm not rich at all. Last year, I made less than $40,000.

It's called not buying everything you want all the time without being able to pay for it in the next month.

I do the same. I'm not willing to say that I'm not in debt because I'm young, though technically I'm absolutely not in debt. I can have a credit card, but I don't have one because I understand how they work. A system of debt and psychotic interest, no thanks.

It's why I won't have a car unless it's worthless. So far, the bus is fine for me and costs less in my opinion.

But again, I don't live in my own house just yet, so it's a bit unfair to compare myself to older Canadians in this case.


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PostPosted: Wed May 19, 2010 4:38 pm
 


P.S. Lol, Joe Dirt is a ridiculous movie...


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CKA Super Elite
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PostPosted: Wed May 19, 2010 4:48 pm
 


bootlegga wrote:
Mr_Canada wrote:
Those who don't have debt are either rich or homeless.


I'm not rich at all. Last year, I made less than $40,000.

It's called not buying everything you want all the time without being able to pay for it in the next month.


You may not be rich... but your wife may be. :wink:

Mine is. :lol:


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PostPosted: Wed May 19, 2010 5:17 pm
 


Quote:
Regardless, be we politician or citizen, the common bond that unites all Canadians is apparently gleeful spending beyond our means.
That's a fairly universal situation. The other countries you list differ only in quantity, not quality.

It's an aspect of modernity I truly despise, the whole debt/credit culture. Personally I have no debt, but only because I take any classes I couldn't pay for (ie, didn't graduate), rent rather than buy a house, loath credit cards and pay them off monthly if I use them at all, and have fought off debt several times in the past. Technically I'm still fighting off debt, and am trying to get a second job for that purpose; it's just not my own debt.

I greatly respect Dave Ramsey and his media empire for that reason: he encourages people to live debt free, and shows them how. His radio show is awash with success stories from callers-in, paying off tens of thousands in debt over X years by living well within their means. His whole attitude toward debt is more aligned with my conscience than the modern standard. He's a little bit of a Republican Party hack, but his politics don't invalidate his personal finance advice (or, anyway, they don't often stand out to this Republican).

Re: Mr_Canada, I'm not rich but I'm arguably homeless, since I'm living with debtors as I aid them financially.


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