While flipping through my on-line news feeds this morning, two different reports caught my eye. The first was and economic report from RBC on the state of credit in Canada, check it out here
This report tries valiantly to make it sound like the indebtedness of Canadians is manageable and ultimately good for the economy. According to RBC Economics the rate of indebtedness in Canada increased 4% in the month of April and somehow that is viewed as good for the economy. The fallacy of that claim should be obvious to anyone with the ability to do first grade math. A dollar can only be spent once! Therefore; every dollar spent servicing debt is another dollar that can never be spend again to purchase actual goods and services that help drive the economy. The only people who benefit from increasing debt loads are the bankers who make money appear out of thin air by lending it to you at interest. They can only do this for so long though before they come asking for their pound of flesh in return. Debt actually kills the economic growth that the banks have been so happy to drive in the first place handing out their cheap money. It’s a house of cards that simply must collapse under the weight of its own hubris.
But the greed inherent in lending money at interest (usury) is not what makes us all delusional.
The real delusion here is made apparent in the second story I found today, read it here.
In this story economist at another of Canada’s largest banks are talking about the fact that the majority of people they polled expect to be debt free by age 53. But the majority of Canadians over 53 are still in debt. How can this be?
The fact is, we like the idea of being debt free but most of us lack the discipline or a plan to get there. We delude ourselves into thinking that one extra night out won’t hurt that much, or that the next time we get a raise we won’t increase our lifestyle and instead increase our debt repayment plan. In reality, one night out has a way of becoming two and the raises never come. If we sit down and map out our debts and payment plans we can see that it is possible to be debt free and age 53 is the number that most of us come up with, but then we continue to make decisions that sabotage our plans, cause our debt load to increase or prevent us from making all of the payments we promised. Lo and behold we miss the target.
The only way to be debt free, at any age, is to develop a plan and stick to it. That’s what The Meekonomics Project is all about. We are here to help Education and Empower you to be Debt Free. At any age!
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