Time again to learn about you, the readers Last year I ran a poll asking about people’s household debt levels. Thanks to everyone who voted (^_^) Results below.
Wow, about a third of readers are debt free Congrats!
About 1 in 20 owe a million dollars or more That’s probably not hard to believe since a typical two story house in Vancouver can cost over $1 million
Canadian individuals in total have about $1.36 trillion of debt, and this number has been consistently rising due to sustained low interest rates. This means that on average each man, woman, and child, owes about $39K each if split evenly. So good job if you have less debt than this
I’m in the $500,000 to $1,000,000 debt group which is good because why be “average” when we can be extraordinary? I think people go into debt in order to solve a problem, or make life better. And almost always taking on debt will lead to a positive outcome, enhancing our livelihoods I’m not even talking about investments. The 3 largest forms of debt (most of the $1.36 trillion) are mortgages, student loans, and car loans.
Who has mortgages? Home owners! and studies show that on average people who own their homes over time have a higher net worth than renters. Who has student loan debt? People with higher education! and studies show an investment in human capital is one of the best ways to open up doors to new opportunities Who has car loans? Drivers! And anecdotally I can say that switching from public transit to driving my own car for commuting to work and grocery shopping is one of the best lifestyle decisions I’ve ever made :) Maybe debt is just a necessary evil that we need in order to make society a better place
Random Useless Fact: The colours of the Canadian bank notes resemble the international LGBT pride flag (rainbow flag.)