, On Wednesday January 12, 2011, 11:06 pm ESTIs it your goal to pay down debt this year? We've got some strategies to help.
Debt: surveys say we’re deeper in it, but we’re more eager to get out of it too. Debt has become an ugly word in recent years, and it’s no surprise that paying it down tops many New Year’s resolutions lists again this year.
Just before 2011 started, Canadians got a bit of wake-up call when new numbers showed we hit a record high for household debt. According to a story on CBC News , household debt increased by 6.7 per cent over levels from just a few years back. Our debt to income ratio — the amount we earn after taxes versus what we owe — is at its highest level in 20 years at just over 148 per cent. We’ve even surpassed the U.S. when it comes to the average amount of household debt.
Why is this worrisome? Experts warn we could be in for a fall. Economic growth isn’t what it should be, and some analysts warn we could be in for another recession due to the financial crisis in Europe. Also, as interest rates rise so too will debt payments — and that’s going to make household budgets even tighter and make it more difficult to save. What about retirement? Recent figures suggest more boomers will enter it still carrying mortgages and credit card debts, according to a story on CTV News.
12 ways to defeat your debt
