Canadian Household Debt at all-time high.

[Catman10]

This is an interesting statement which I don't understand, this morning the news reports that we are at a breaking point with debt, which I have not been able to prove by my research of being a super surfing whore on kijji etc. If there is debt and people cannot handle it what is the sacrifice? Vehicle sales have been setting all kinds of sales records for a long time, people are still buying new houses that they cannot afford and toys are everywhere. What I don't get is there is hardly any fire sales or repo'd stuff, so what is the sacrifice to drive the new 2018 bla bla? food?, utilities?, entertainment? I don't know. With extra taxes added to every month now with our wonderful Carbon tax and gas prices up super high will we start to see some true blow out deals out there, or does the bank get everything which you would think at some time should translate into lower prices on stuff to clear out inventory to free up cash. I would love some opinions to help understand this because as a half decent responsible person with my money I would love to find that DEAL that is yet out there ha ha. I guess the other theory is the Media is full of s%!t and we are not as bad off as they claim, what do you guys think?

 

[imdoo'n]

idiots buy on time, love payments over 20yrs. visit all the dealers till they can find one that will finance them. lol, one born every minute i have heard. gotta have something to show off .

 

[sirkdev]

I'm guessing that the repo companies are selling directly to the us market. With the dollar differential the way that it is. Wild guess...

 

[etecheaven]

you would be surprised at what people put on payments. My wife has this friend who has pretty much everything she owns on payments, from the couch to the blender. It makes me sick and she is not alone in this. There should be tighter rules on financing as people cant help themselves when they realize they can just make payments.

 

[imdoo'n]

i get a kick out of the ones who have to buy something just a bit better than someone who just brought home a new item. always competing with the jones. friggin hilarious. i love idiots.

 

[catinthehat]

I'm guessing that the repo companies are selling directly to the us market. With the dollar differential the way that it is. Wild guess...

We can't buy a decent used vehicle in our area because of this. We see many truckloads of vehicles going south every day, have to wonder how much of the smaller products/toys are going south in enclosed units not visible to the public.

 

[Bnorth]

I think in a lot of cases people can't afford to sell as they are underwater on the toy/vehicle/whatever and owe more than it's worth. This is a product of zero down financing and crazy long payment terms. I also know a surprising number of people that have been starry eyed over the real estate increases and have home equity loans that they aren't using to finance capital improvements to the home but instead for trips, concerts, and other events; just basic living expenses.

With interest rates increasing and real estate sliding in the two markets that lead the rest of the country I think some hurt is coming for those that are over-extended.

 

[Teth-Air]

I think in a lot of cases people can't afford to sell as they are underwater on the toy/vehicle/whatever and owe more than it's worth. This is a product of zero down financing and crazy long payment terms. I also know a surprising number of people that have been starry eyed over the real estate increases and have home equity loans that they aren't using to finance capital improvements to the home but instead for trips, concerts, and other events; just basic living expenses.

With interest rates increasing and real estate sliding in the two markets that lead the rest of the country I think some hurt is coming for those that are over-extended.

What are you saying, it's time to order a new sled?

 

[pfi572]

What are you saying, it's time to order a new sled?

And sell the one that is a year old with 400 kms on it for 1/2 price.

 

[eclipse1966]

boy the stories I can tell about people who we know and the stupidity they have when it comes down to buying toys to compete with the neighbours. One couple we know haven't paid their biz taxes in 3 years as they lived way beyond their means with trips, boats, Harley's, RV etc etc. Now Rev Canada is breathing down their neck. Another person I know his son got laid off in the patch making over 13 grand per month. He is asking to borrow money from his 70 year old father only 1.5 months after being laid off. His monthly payments are 10 grand CRAZY!!!! His father told him to start a fire sale and only then he would consider landing him money. Son blew a gasket. Anyway, the list goes on and on unfortunately.

 

[imdoo'n]

yup the look at me crowd, mine is better than yours, lol. i want it now how low can you get the payments 50 yrs ok go!!!!!


then they need to borrow gas or something else, lol.

 

[Stompin Tom]

coke and whores are expensive.

 

[Summitric]

coke and whores are expensive.

yup, hookers and blow

 

[fj40]

I'm guessing that the repo companies are selling directly to the us market. With the dollar differential the way that it is. Wild guess...

Good point I was talking to person that works for a auto auction place and said most the better trucks were going to the US.
I was hoping to see some deals also but haven't seen big deals.
Could be that people wait until they get repoed
Lots of Guys at work are driving new trucks every few years.
I don't know where they are getting the money from, as we all make close to the same cash

 

[Lunch_Box]

boy the stories I can tell about people who we know and the stupidity they have when it comes down to buying toys to compete with the neighbours. One couple we know haven't paid their biz taxes in 3 years as they lived way beyond their means with trips, boats, Harley's, RV etc etc. Now Rev Canada is breathing down their neck. Another person I know his son got laid off in the patch making over 13 grand per month. He is asking to borrow money from his 70 year old father only 1.5 months after being laid off. His monthly payments are 10 grand CRAZY!!!! His father told him to start a fire sale and only then he would consider landing him money. Son blew a gasket. Anyway, the list goes on and on unfortunately.

Oil patch workers are some of the worst and its not even the young guys that are just getting into it. Tool Pushers making good money can't handle spring breakup cause that's a couple months with no income. Crazy how people with that much income still live paycheck to paycheck. One thing my parents taught me was to always have at minimum 3 months wages saved in your bank account, that way you have cash for any unexpected expenses.

 

[etecheaven]

Oil patch workers are some of the worst and its not even the young guys that are just getting into it. Tool Pushers making good money can't handle spring breakup cause that's a couple months with no income. Crazy how people with that much income still live paycheck to paycheck. One thing my parents taught me was to always have at minimum 3 months wages saved in your bank account, that way you have cash for any unexpected expenses.

It comes down to the parents. Alot of people think its normal and ok to be making payments on everything and these people teach their kids the same thing. Teaching your kids good money management is so important among other things.

My parents are have done very well for themselves but they started with very little and the stories they told me growing up set the example. Just cause you can buy it doesn't mean you can afford it.

 

[j335]

Oil patch workers are some of the worst and its not even the young guys that are just getting into it. Tool Pushers making good money can't handle spring breakup cause that's a couple months with no income. Crazy how people with that much income still live paycheck to paycheck. One thing my parents taught me was to always have at minimum 3 months wages saved in your bank account, that way you have cash for any unexpected expenses.

Hopefully your TFSA is maxed before you put in bank account, that’s what I do anyway.

Government dept has skyrocketed yet you hardly hear of that... The interest rate hikes will taper down dept eventually

 

[pfi572]

^^^^^^
Exactly.
Needs and wants ,
Food and shelter and one vehicle to get around . Mortgage payments or rent are required.
Everything else after that will be wants and you don’t borrow money for them. IMO
I never have and never will and raised kids the same . It’s worked for them also . Lol

 

[adamg]

Good old fashioned stitch and b*tch going on in here.

I agree with the OP. I see no signs of people not being able to afford their crap. There are no great deals on used stuff out there.

 

[Stompin Tom]

The budget will balance itself ................................................... a true leader