Statistics Canada released a report today that stated that household debt has risen in this country to a point where the average person owes $1.67 for every $1.00 earned
Technically they said “Disposable Income” but nobody elaborated just what that means, is that after tax income, or what?
Anyways, the trend is that people are piling on debt at an alarming rate. I, for one, have no illusion as to why . . .
People are tapped out and just can’t make ends meet, so they turn to credit cards, lines of credit and other forms of credit to keep going.
Sooner or later this will run out and people’s fiscal house of cards will collapse. This is why this blog entry is for anyone reading this to seriously consider tackling your own debt.
Once again, you don’t have to go to my extreme to get your debt under control, and eventually eliminated (yes it is possible).
What you do need to do is to downgrade your lifestyle in order to free up cash in your monthly budget and put that cash towards your debt.
You can do this in a number of ways: rent a room, rent a house with another family, or even move in with family.
There are a thousand ways to do it and the best way to start would be to imagine what you would do if you were suddenly unemployed.
That will get you thinking of the drastic ways that you could downgrade your lifestyle to balance your shockingly drastic reduction in your monthly income.
Just think about it, because being mired in debt is not right, nor acceptable, even if it has become “normal.”
As always: Keep your head up, your attitude positive and keep moving forward!