With household debt on the rise, a recent Ipsos poll conducted for Manulife Bank of Canada found that 45 % of Canadians report spending more than they earn and 40 % doubt they will ever be debt-free. The same report holds states that Canadians now average a debt load of $30,000 in unsecured, non-mortgage debts, up from $12,000 20 years ago. The average debt per Canadian consumer (including mortgages) reached $71,300 in the first quarter of 2019, an increase of 2.6 per cent over the same period last year.
Nomsa Maromo is a financial educator. She is so passionate about educating people about their finances. Her biggest peeve is credit cards: their accessibility and the burden they place on people. Many people rely on credit cards to pay for their groceries and their everyday needs. The average credit card interest rate is 21.28%, up a slight 0.02 percentage points from December 2019. This is according to data collected by the Balance in January 2020.
Nomsa said most households were $200 or a paycheque away from poverty. Many people suffer deprivation but they do not say it or let their friends and family know they are struggling. In this video, she describes what a life without debt looks like.