So, I read an article the other day that made me shake my head. It said that Vancouver, as in the people of Vancouver, have the highest average credit scores in the country.
Great . . . congratulations, I guess.
It went on to say that this is because Vancouverites have found a way to meet their financial obligations.
Great . . . I guess.
The metric that I would like to see is not the debt ratio (as in where do people have the most or least amount of debt in relation to their annual income).
I would like to see the debt freedom index. Where are people the closest to or totally debt free.
(Pause for every business pundit and economist in the country to gasp in horror.)
What this article tells me is that the people in Vancouver have found a way to keep making the minimum payments on their massive debt.
Great, now tell me people of Vancouver, how do you plan to pay off that debt?
Why worry about that?
Let me ask you this: how much do you think it pays to be a Walmart Greeter and how many of them do you think Walmart will need?
What’s that? You don’t have to worry because you house is now worth a bazillion times more than you paid for it and you can sell it, pay off all of your debts and retire early?
Let me ask you this? Could you afford to buy your home as it stands now?
Could you scrape up even the 5% minimum down payment needed? Could you afford to make the mortgage payments on your house, if you bought it now?
How many foreign investors do you think there are out there and do you really want to risk your financial future on the bet that they will still be there when you are ready to “cash out?”
My point is this, the banks and government think everything is fine because you are paying their bills, you are paying them.
Why don’t you find a way to get rid of your debt and start paying yourself? Being buried in debt is not the way you were meant to live.
Banks have made it “normal” because it serves them and their interests, not you.
Do something about your debt before you are standing on the threshold of retirement still buried in debt and unable to pay it off or even keep making the minimum payments.
As always: Keep your head up, your attitude positive and keep moving forward!