Living without debt is possible
We just need to change our expectations
Canadians, of all income levels, have developed an unprecedented dependency on debt. Contrary to widely held views, most people struggling with debt are middle and high-income earners. People with low or no income simply do not qualify for loans or credit cards. Interestingly, very few Canadians have a plan to retire or eliminate their debt but they do plan to get further into debt.
Moving debt from unsecured high interest credit cards to lower interest secured mortgage debt creates the illusion of a solution but in fact deepens and broadens the debt load being carried. Adding $25,000 to a mortgage at 3% interest could easily add about $60,000 in interest charges. Moving credit card debt to a mortgage also frees up the credit card allowing for more debts to be piled on.
Before making rash credit decisions that could have dire financial consequences consider meeting with a Licensed Insolvency Trustee to review all the options available for you. Changing your expectations of using debt to finance a lifestyle that is out of reach to something more realistic can be very beneficial to your mental health.