Borrowing — to buy a house or a car, or pay for a vacation — is part of today’s Canadian lifestyle. And lending is a major industry.
For most people, the ability to obtain credit is a valuable asset. Credit provides a handy way to shop without carrying large sums of money. It helps us cope with emergencies, such as a car breakdown or replacing a roof. It can also help us budget our needs and wants. But credit can have a downside, as well. It can encourage us to live beyond our means. High minimum payments can make it hard to meet basic expenses – things like rent, food and clothing. Interest charges can eat up money that could be used for other things.
In the end, whether or not to borrow is an individual decision. If you decide you want to make use of credit, check your finances first to see if you can really afford it. Make sure the payments will leave you with enough money to meet other necessary expenses.
