Thursday, February 3, 2011

Don’t let devotion to RRSPs distract from paying off debt


Canadians are another RRSP season older – and deeper in debt.

In 2010 we owed $1.48 for every dollar we earned, up from $1.45 the year before. According to the Ottawa-based Vanier Institute of the Family we’ve climbed high on the debt mountain: In 1990, the figure was 90 cents.

What’s worse, these figures tell only part of the debt story because they include mortgages, or what experts call “good debt.” A recent survey by the credit bureau TransUnion showed that roughly 25 million Canadians with debt owe an average of $25,000 each – not including mortgages. That kind of consumer debt can attract interest rates nearing 30 per cent for retail credit cards.

CLICK HERE to read the entire article at The Globe & Mail

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