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No More Debts

May 15, 2019

Just imagine having no more debts, being and living completely debt free.  It seems that such a notion is impossible, unless you have a very significant income stream.  Debt is a bi-product of poverty and as poverty grows so does debt.

It is inconceivable that people would simply go into debt because “it’s cool” or “trendy”.  The reason people have debt is to allow them to buy something that they can’t otherwise afford.  Canada’s consumer debt levels have been increasing steadily for decades, so has the cost of living and taxes.  The only thing that has not been keeping pace with inflation is incomes.

If you file a bankruptcy you will have no more debts, at least for a short time period.  Most people do acquire debt again after filing for bankruptcy, an increasing number are able to get credit cards and other forms of debt even before they are discharged (released) from bankruptcy.  Filing a proposal will not leave you with no more debts, you will still have a debt (obligation) to pay the proposal.

Tax Freedom Day in 2018, for Canadians, was on June 10 meaning that every single penny you earned up until that date disappeared into some form of taxation.  With Trudeau’s new “carbon tax” and other taxes, implemented by various levels of government, that date will be even further out this year.  By 2020 we will likely be past the tipping point where more than half our income disappears into some form of taxation.

We have seen house values double in some areas in the last four years, but incomes certainly haven’t, the price of food has also doubled for many products.  Credit use is getting way out of hand and in the last five years we have seen consumer debt increase by more than 35%.  In the next five years it will almost redouble.

You can imagine having no more debts, but, realistically, you’d better learn to manage your spending if you don’t want to be consumed by debt again and again.  We can help you solve pressing debt problems, but we can’t help you stay out debt in the future beyond giving advice.