Canadians like their stuff. They’re not afraid to go into debt for their new cars, homes, large-screen TVs and other items, big ticket and small. As a result, many of us owe way too much.
Moody’s, one of the world’s leading credit agencies, recently gave Canada an AAA rating for its “relatively solid economic performance” and stable banking system. But at the same time it warns that the country’s high household debt levels and soaring house prices pose “a potential risk” to those strengths.
Even though debt isn’t usually a good thing, sometimes it can be justified. Rather than simply buying something we can’t afford, debt can be a shrewd way to get ahead if you’re reasonably sure that you will have the means to pay it off. . . . Read the entire blog post I wrote for Richard Killen & Associates.