Photographer: Martin Vorel
“Canadians have heard the message over and over again, from the Bank of Canada, the Parliamentary Budget Office and even the credit industry itself: Personal debt levels are alarmingly high, especially in light of interest rates that are only poised to increase,” wrote Solomon Isreal for CBC News on June 29, 2017.
Isreal continued, “Why aren’t those warnings convincing Canadians to borrow less? The answer may lie in a combination of blissful financial ignorance, economic incentives to keep borrowing and complex subconscious attitudes towards debt.
‘We’re comfortable carrying debt’
Credit counselling experts say many Canadians simply don’t understand how precarious their finances truly are, especially as ballooning home prices and a stable economy make people feel wealthy.
“As long as people are out going to work every day, earning an income, it’s easy to perceive that they’re managing their finances,” said Laurie Campbell, CEO of non-profit Credit Canada Debt Solutions.
Until the fallout from high debt levels leads to a collective economic crisis such as a recession, said Campbell, individual Canadians will continue to ignore the risks.
Read the full article here.
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