Sing it with me now:
“Another Saturday night and I ain't got nobody
I got some money 'cause I just got paid.
How I wish I had someone to talk to
I'm in awful way.”
Sam Cooke sang it right in 1963 but if he was singing his hit song today he’d likely have to change the second line to ‘I ain't got no money though I just got paid.’
Oh, he’d be in an awful pickle alright, with nobody and no money.
Why? Because he’d be in debt just like most other people in Canada and the US.
A recent article with a Canadian perspective states the following:
The financial situation in the US is bad; Washington is borrowing just to stay afloat. Sadly, the same can be said for many Canadian families. (Aug. 4, London Free Press)
Though the American family wasn’t mentioned, the outlook is as bleak, if not bleaker, for our neighbours to the south.
Though we think we live in the land of plenty, it isn’t a prosperous place for all families, says the article.
“Credit card and mortgage debt, combined with everyday expenses like putting food on the table, are keeping Canadians from saving for the future.”
Today is tough for many. Tomorrow will be tougher without savings.
Though the US is taking on “six times in debt what it makes in annual revenue” - way too much to handle - the average Canadian, with $1.47 debt for every $1 earned, is in a very vulnerable position too.
“Once interest rates begin to climb from historic lows later this year, it could be too late for many Canadians to dig out,” says the head of online bank ING Direct Canada.
Though some recent news reports “more that half of Canadians say they are making good progress paying down their debt” (Aug. 9, London Free Press), the progress won't help them stay afloat when other troubled waters on the horizon swamp the boat they have weighted down with a lifestyle bigger than their weekly pay cheque can afford.
[My mantra, i.e., reduce spending, pay down debt, save money for the tough times ahead, is getting timelier by the minute.]
More about troubled waters to follow.
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Please click here to read more about our lovely debt situation.
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