First of all 25% of Canadians think that their mortgage and car payment is not considered as DEBT. Let me just say that these people need some serious “personal finance” training from Rich Dad, Poor Dad. Anything that takes /subtracts from your monthly income and cause you to have less disposable income / spending money is considered a liability or debt. Also any loan/credit that keeps you from saving money in a TFSA or high interest account is detrimental to your financial health.
Another thing is that people think their house is an asset. What a load of crock. It is a liability to you as long as you have a mortgage out on it. People than use their house like an ATM and take loans out on it, which is a path to self destruction. The only entity that considers your home an ASSET is your bank, because they own you, you borrowed from them and if you cannot pay any more, the house now belongs to the bank.
I suggest you research the housing crash of 2007-2009 and also read Rich Dad, Poor Dad by Robert Kiyosaki.
It doesn’t surprise me, everyday I run into people with a huge luxury car loan or lease, while paying off a huge mortgage payment on a house in a so called “upscale” neighborhood. After every pay cheque these people are scraping by, just so they can keep up the fake image. I also meet people 10 years older than me, who are close to retirement age who have no clue about credit and are over their eyeballs in debt. These are probably the people that think a car payment or home mortgage is not DEBT, they have it all wrong and the are slaves to their debt for life.
The type of people above have bought into the material life style mainstream media have literally programmed their minds, and at the same time been duped by mainstream financial media that tells you carrying so much debt is fine and you qualify for it………until you lose your job and cannot service your debts, the house of cards come tumbling down.
The purpose of going into retirement is to be debt free. By the age of retirement most people should have bought their freedom, which means that they can live their lives in the old age free from the “shackles” of debt.
50% of Canadians going into retirement is NOT good as when you are in retirement you are on a “fixed” income and for some that is only government pensions which is not a whole lot. If you have debt payments to make, you are not left with much for rent and food…and any health problems can put you further into debt or out in the streets at age 65 or older. Not a pretty picture.
Heed this article as a warning if you are in your 30’s or 40’s…best pay off all your debts as soon as possible and stay very close to debt free until you retire. Sock as much money away as possible, learn to invest and invest in yourself (financial knowledge).
by Das Brain
Article is below:
http://business.financialpost.com/2014/12/01/about-half-of-canadians-expect-to-be-in-debt-when-they-retire/
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Tags: 50% of, Canadian's, Expect to Be, in Debt, Retire, When They
