Do you have debt phobia?
Is there a word for fear of debt? “Call it debt phobia,” says Lorne Bozinoff, president of Forum Research Inc., which found, in a poll commissioned for the Financial Post, that 55% of Canadians do not believe personal debt can be used to build wealth.
A recent survey, published in this article from the Financial Post, shows that over half of Canadians do not believe personal debt should be used to build wealth, although 76% of those polled believe there is such a thing as "good debt." 38% are reported as having no debt, and this includes a mortgage.
It is believed that those with an aversion to debt simply aren't ready for it, which is not necessarily a bad thing. The important point to keep in mind is knowing when responsible borrowing will improve a financial situation. For instance, borrowing for education can open doors for higher paying employment, applying for a credit card can help build credit history, and obtaining a mortgage is an investment for the future.
This article also explores the strategy of leveraged investing, a practice employed by 61% of Canadians with an annual income of $100,000. Those who support borrowing to invest are careful to caution that this option is not for everyone, but can be effective when used properly.
For more information on borrowing options that can have financial benefits, such as a Tax Deductible Mortgage, contact one of many qualified Ottawa Mortgage Brokers.
To read the full article from the Financial Post, click here.