The federal government is going to keep Canadians mortgage debt down by telling the banks to keep interest rates up, that’s for our own protection, right? Then why are they turning a blind eye to the credit card debt that Canadians are piling up at usurious rates with bait and switch schemes promoted by the same financial companies whose interest rates they are protecting?
When people are taking out a mortgage at 2.89% or better they are getting some value and the opportunity for positive equity on their investment in the future. When people use credit cards to buy cell phones, TV sets and other toys they are paying 18 to 24% interest on disposable items that will have no value long before they are paid off.
Artificially holding mortgage rates high while allowing usurious credit card rates has got to be one of the most ill thought out programs in the history of federal money meddling.
Instead of promoting credit card debt, we should support people to manage their money and buy a home. That is a hell of alot better for our economy, it creates local jobs, encourages financial planning and gives people the pride of ownership. You can live in your home even if the price drops as long as you have a good rate, a longer term and the ability to pay off good chunks without penalties.
Who are the feds protecting? Canadian jobs are not going to be created and people are not going to own their own home when we borrow on credit cards to pay for TVs made in China. If the feds need to meddle in something then they should look at the questionable credit card practices that are really getting people in trouble.
For more information on credit card debt check out “The Dirty Dozen Credit Card Facts” from MonsterMortgage.ca