Tuesday, October 19, 2010

Shocking Situation

One of my friend's friends works in banking and told me a shocking story. Back around when unemployment in our area was really high, they would routinely get 3 -4 people come into the bank each day to try and re-negotiate terms on their mortgage and other loans.

It was very common to see people with $200000 to $400000 in consumer debt (not including mortgage)!

I would have a hard time trying to spend that much money on non real estate stuff. Maybe a lot of that is compounding interest. Either way, we were shocked at the numbers. Considering I stress out and tired with owing $100000 or so in mortgages.

A lot of those people did end up losing their homes, declaring bankruptcy or negotiating a consumer proposal. The average age of those folks were in their high 30's to mid 40's.


  1. Unfortunately people in that age range feel entitled to things when they don't have the money to purchase them outright and feel that it is perfectly ok to use credit to get what they want right NOW instead of saving. Hardly anyone saves anymore. So sad.

  2. Hi Jane;

    I agree. The truth is, when something is leased or financed, you don't own it outright which means it can be taken away...I think a lot of people forget that.