Oh Canada!

[HP_Cuda]

I hope this is not a prelude of what is to come:

https://www.zerohedge.com/news/2018-12-11/canadian-personal-bankruptcies-are-surging-breakneck-speeds

[dodj]

I have been hearing for a while now that Canadians are racking up tooo much personal debt. rising interest rates will hurt.
I remember when I bought my house in '87...11.25% mortgage.

[HP_Cuda]

I remember back to my first place I bought I had to get a second at 10.75% to avoid PMI.

I thought that was crazy but I've heard others pay way more.

Yep that was paid off long ago...

[blown motor]

The scary thing is that interest rates have only gone up .5% this year IIRC. What happens when they go up another half or even a full percent?
My daughter works in banking. She says most people have no concept of financial management. She thinks this should be a mandatory course in high school and she's likely right. Credit is just too easy to get.

[anlauto]

I know I'm broke 

[Brads70]

Problem is the government is not exactly leading by example.  Google Ontario debt and Canadian federal deficit. Without getting political there is one party in particular that shares most of the blame.
Socialism always runs out of other people's money ALWAYS!
I need to move!

[Cudakiller70]

My daughter works in banking. She says most people have no concept of financial management. She thinks this should be a mandatory course in high school and she's likely right. Credit is just too easy to get.

This is spot on, it really wouldn't take that much to do it.

First house 1980 13.5%, interest rate was 11.5 when we bought, by the time we closed it went up.

[RUNCHARGER]

You pay 21% interest on your mortgage and warn young people about it and they don't listen. You tell them about WWII, they don't listen. So let it ride I say.

[Chryco Psycho]

The scary thing is that interest rates have only gone up .5% this year IIRC. What happens when they go up another half or even a full percent?
My daughter works in banking. She says most people have no concept of financial management. She thinks this should be a mandatory course in high school and she's likely right. Credit is just too easy to get.

I agree they waste 12 years of your life teaching a lot of useless stuff while ignoring basics everyone needs to know to survive

[jimynick]

I'm lucky, my 3 kids all have bought homes and saved enough that they didn't have to pay the CMHC vigorish and they've all gone up considerably in value; but I do hear you about teaching economics again! We bought our house in 1980 and the interest rate was 16%. Foolishly listening to the real estate agent, we only took a one year term and you can imagine our joy when we discovered that it would be 21% to renew! You could borrow money from the mob for the same rate! As for the bankrupts, that's on them. Didn't your daddy ever tell you "boy, don't be spendin' more money that you've got!" ? Mine did and for once, I listened. Nuff said. 

[Chryco Psycho]

In the early 80s almost everyone in  Alberta got caught , the oil patch had been booming & money was easy to come by , overnight the Federal Gov enacted a massive taxation policy that no one saw coming & Alberta shut down oil production telling the federal gov could have 100% of the profits from oil as AB was going to produce nothing , overnight all the jobs & $$ were gone . I was working as a locksmith & was doing 3-4 foreclosures / day for the banks as people walked away from their homes , everyday the banks were offering me the homes I was foreclosing for $1 & take over the payments , but I was not making enough to cover the payments either , I could have bought $100,000 of equity for $1 if I had been making good $$ but I wasn't 
The purpose of a federal gov is fight for the people not to fight against them & destroy them but  no one in Canaduh seems to understand that as the gov competes with the people every day in numerous businesses,  truly sad .

[js27]

WOW-that has got to hurt. I bought my house here in the USA in South Carolina in 2003 at 5.4% and then refinanced it in 2010 for 3.62%..
JS27

[RUNCHARGER]

My first house was 1000 square feet and it was all I needed, my brother was paying 21% on his and I think I was only paying 14% or so on mine. We got by.
Now I see entitled, spoiled little brats (mostly spoiled little daughters from what I can see) buying way more house than they need and maxing out their finances because their parents have been bailing them out all their life.
These kids think someone else should pay for their education, their babies etc. as well.

[Chryco Psycho]

Maybe I should mention that it was the socialists that were blowing $$ like crazy that were running out of other people $$ to spend when they chose to change the tax policy , Ab fought back by stopping production so hopefully the gov take was less than in the good times not more as they expected .
Socialism works until they run out of other peoples $$ to spend to support it Canada may start to resemble Venezuela shortly

[RUNCHARGER]

You got it. It's been coming a long time. I don't owe anyone anything, when they stop paying my CPP and OAS (that I have paid into for 45 years) I'll be out of here so fast it will make your head spin. If we don't have decent healthcare and safe policing there is no need to live in this beautiful but cold country.