According to a poll by the Forum Research Incorporated, as an aggregate, Canadians are debt averse, or debt phobic. The poll numbers indicate, that especially amongst the lower and lower middle class income earners, that some debt is all right, for example debt for buying a house, car, or a college level education. However they are against the idea of borrowing at low interest rates to invest in an effort to get a higher level of return. They are afraid of what has happened to people in Europe. Deputy Chief Economist Benjamin Talis with CIBC World Markets. He states that it’s probably fine that many people are debt averse as they are not ready to handle a major debt load, yet he feels that more could handle it to improve their lives. According to him and others our society is built on some debt and it is a tool that helps to advance economic growth. For the wealthier class in Canada this isn’t so much of an issue with built in angst. Economic reports indicate that while personal debt is going up it is doing so rather slowly, with credit card debt declining and auto loans increasing. An example cited for questionable debt would be buying a second car as luxury item that doesn’t get used very often. The investment and related taxation laws in Canada are favorable to those who borrow at current low rates to invest.
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