Вы находитесь на странице: 1из 2

Young and debt-bounded With only four months in a new country Esteban* already owed $500 to a bank.

He was 19 years old, had no job, and was running out of money. This was on the summer of 2003. At the time he didnt know that a few years after he would be struggling to pay a $30,000 debt. The stress of having to pay bills and knowing that you dont have the money is unimaginable, says Esteban, whos 27 years old now. Its something people cant understand unless theyve been through it. Its a lesson he learned in 2008 when he lost his job. That year Esteban realized his credit was getting out of control. He had been living with loans since arriving from Colombia. He paid small amounts with his salary each month. Now he had no money to live, or to pay the credits he owed. Estebans case does not stand alone. In May last year, the Certified General Accountants Association of Canada (CGA) released a report about Canadians debt. Where is the Money Now made headlines across the nation. The report suggested that all Canadians would owe $41,740 if we divided the debt equally. Thats a sum 2.5 times greater than two decades ago. Young Canadians hold the majority of this debt, said the report. A large part of it is due to new mortgages. Economists call these good loans because they are like an investment. Consumer credit, on the other hand, is bad because its unlikely to yield any returns. This is the kind of debt thats increasing at a faster pace. Between 2008 and 2009 there was a 92 per cent hike, according to the report. The recession, paired with high living standards, is one of the reasons for the problem. The report includes an analysis of the 90s depression that suggests that during those years consumption decreased. In contrast, consumption kept pace while the economy crumbled in the last recession. People are used to a lifestyle where luxuries have become necessities, says Brian P. Doyle. He is the president of Doyle Salewski Inc, an Ottawa-based firm of bankruptcy trustees and credit councillors. The costs for these things have been rising but, unfortunately, wages havent kept pace. Lax credit rules are another factor of the rising-debt equation. Esteban recalls a time when he didnt have the money to do the monthly payment for one of his credit cards. I called the company to arrange something, and they offered me a limit increase. I could not believe it, he says. He hanged up the phone with $2,000 more of credit. Looking back into his debt spiral, says Esteban, also helps him recognize another of its causes: procrastination. He says that when his girlfriend first asked him to show her how much he owed his answer was no. This was in part because he had no idea of much it was. He was afraid to accept the real numbers, he says. This rejection of reality is not uncommon. Christopher Davis, an associate professor of psychology at Carleton, says that most people wait for too long. The situation has to get out of control before they do something. In this sense getting in debt is like gambling sometimes, he says.Theres always the hope that the next role of dice will rule in their favour.

Despite the troubles it causes, debt stress can have positive results. Davis says that, like other obstacles in life, a debt challenge can strengthen a person. People learn to value their friends and partners better after going through something like that, he says. This is something Esteban says he agrees with. He has been living with his girlfriend for almost two years now. She has taught him how to budget and how to be realistic at the time of buying something. With her help his debt has dropped by more than $10,000. Learning to spend wisely has allowed him to save money. This is something that he could only dream about before, he says. Last year he worked an extra-shift and saved the money for their anniversary. He invited her to an elegant restaurant and paid with cash. I dont really know how to explain how it felt, he says. I just know it was amazing. -30*The name was changed at the persons request.

Вам также может понравиться