Merriam-Webster defines debt as “an amount of money that you owe to a person, bank, company, etc.” According to Statistics Canada, our Canadian household debt load was $1.6 trillion. Lack of financial understanding and incorrect choice of one’s decisions are to be blamed for high debt ratio. Most of us with high debt are not financially educated and disciplined until they run into the pitfall. The most common reasons for the high household debt ratio are financial mismanagement, separation or divorce, income reductions, job loss, medical conflicts, and unexpected disasters.
The majority of the Canadians walk into debt by the most common and widespread reason which is overspending and consumerism. An excess use of credit, spending more than what you are able to pay back is often the most case and cause of heavy debt among
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Not all of the costs are covered by our Canadian health care system or insurance. Without insurance and benefits, most of us use credit to pay medical costs and day-to-day living expenses for a while and financial benefits from the government are sometimes insufficient to pay off your outstanding debts.
A survey done by Michalos & Associates in 2014 found that 14% of all the bankruptcies were due to separation and relationship complications. The financial cost of divorce is quite high in Canada. Paying the legal cost, former spouse and the cost of two households instead of one all on the same income is another reason for high debt. Sometimes, emotional stress brings down their earning potentials causing a high debt ratio.
With uncertain world economy and past financial meltdowns cost a lot of jobs around the world, and Canadians were not spared. Many individuals found it difficult to stay on top of their debt payments due to laid off or cut back in their usual hours worked. Most of them relied on their credits during the transition
As you all may already know, British Columbia is suffering financial losses because of the money spent on the Cariboo Road for the Cariboo Gold Rush (1858 to 1863). Now the province has over a million dollars in debt, and as we continue to live in depression, the money problems are remaining the same, and more and more people are leaving elsewhere. If British Columbia joins Confederation, Canada as a whole will take care of the province's debt and fund annually.
By 1971, all Canadians were guaranteed access important medical services regardless of income, employment, or health. Canada has one of the highest life expectancies and he lowest infant mortality rates of industrialized countries, which many attribute to Canada’s health care system. In 1984, the Canada Health Act was passed. This act added provisions that prohibited extra billing and user fees for covered services. To support the ten year plan, the federal government increased health care to the Canada Health Transfer from 2006-2007 until 2013-2014 to provide growth in federal funding. On the other end the United states private for profit insurers based our premiums on age, gender, health status, and pre-existing conditions only covering the healthiest people and avoiding the sickest individuals which in turn e...
For debt, it begins with a simple late or missed payment. These missed payments allow companies to punish card owners without discretion. With this, lenders hike up interest and payments on their customers for negligence, regardless of what their reason may be. Whether it was a tough month for the family or someone died and expenses had to be payed, lenders do not care one bit. From 2013 alone, student debt was at 1.21 trillion dollars, and mortgage standing at a whopping 7.9 trillion (Miller, R. K., & Washington, K. (2014). These loans also feed into why we as a country are in debt, which currently stands at seventeen trillion. These missed payments also greatly affect interest rates from lender companies. Companies wait for payments to come late, which allows them to impose fees and hidden charges that must be paid along with the delinquent payment. With increased rates comes...
As of today America’s national debt is 18 trillion dollars and approximately 5 trillion of that is held by foreign countries including China and Japan. In the last few years we seem to hear more about balancing the country’s budget and politicians raising the debt ceiling so we can pay on this debt. How have we gotten into such an overwhelming and complicated problem with our nation’s money? Ironically the same can be said for our individual household debt as well as making the same mistakes and trying to find creative ways to be accountable to our financial responsibilities. Teaching the basics of personal finance n our schools can culturally change our financial practices, leading to a more financially literate public and a stronger, more stable, America. If the younger generations can become more financially savvy, then there is an opportunity for our nation as a whole to become less dependent on debt to survive.
A century ago, divorce was nearly non-existent due to the cultural and religious pressures placed upon married couples. Though over time Canadians have generally become more tolerate of what was once considered ‘mortal sin’, marital separation and divorce still remain very taboo topics in society. Political leaders are frowned upon when their marriages’ crumble, religions isolate and shun those who break their martial vows and people continue to look down on those who proceed to legally separate their households. With that being said, couples do not just decide to get a divorce for no particular reason. There must be something driving them towards marital dissatisfaction and further, driving them towards divorce.
Another big issue is that health care is technically not free in Canada, as it comes out of our taxes each year. This means that every individual is paying for another individual’s health care (Formosa Post, 2013).
Second, Canada already has a debt even before the war starts and it just got worse when the war starts. A drought happened which lead to a loss in wheat crops, causing farmer to lose money more than they expected. The 50,000 people who work on the railway lost their jobs because of Canada’s railway debt. The women had to work because most of the men were sent in the war and in order to keep the economy working. After the war ended Canada ended up having a huge debt and had to pay $164 million per year to pay off their debt. Plus, when all the soldiers came back, they were out of job. Many soldier who used to work on farm went back and some of them were looking for a job in the factory. This resulted many years of
Secondly, health insurance policies are inconsistent, expensive, cumbersome, hard to discern, full of fine print and contain many loopholes. Most Canadians face a huge tax burden, rising cost of living and will not be able to pay for these additional medical expenses out of the pocket. To offload risk, most indiv...
A big factor in debt is student loans. The debt rate is only rising and becoming higher per family (Freedman
The Canadian health care system is widely known and described by the term “free”, which makes those individuals that classify the Canadian health care system as free, oblivious of what is actually taking place. What this article reveals and Canadians need to understand is that in Canada we have a 70:30 percent ratio of publicly and privately ran health services and those privately ran health services are to be increasing. That 70% is being financed by the government through taxation dollars while the other 30% is directly coming out of individual’s pockets or any benefits or insurance they are covered over. In the mythbuster article it states dental hygiene care is paid by individuals directly out of their pocket or by private insurance
In 2015, comparing with 35 OECD countries, Canadian government’s spending on healthcare reached CA$242 billion, which is 10.4% of Canada’s GDP and each Canadian received CA$5782 on healthcare in average – less than in the United State of America (CA$ 11,916); more than in Australia (CA$5631) and the United Kingdom (CA$5170) (OECD Health Statistics 2017, 2017). Hospital, drugs and physician services are remaining the three highest spending on the Canadian Healthcare system, in which more than 60% of total health expenditure is expected in 2017 (Canadian Institute for Health Information, 2017a). Hospital costs is the largest contributor with CA$1871 per person, estimating 1.9% further growth on hospital spending in 2017 due to continuous salary expenditure on health workforce. In addition, fund spending on drugs and physician services also reported with 4.2% and 3.4% increasing rates separately. However, some hospital services, such as dental care and surgery, are excluded from the Medical Care Plan, causing one in three Canadians need to pay extra private insurance for covering the excluded costs (Canadian Institute for Health Information, 2017a).
To help lessen the financial burden, certain people might have health insurance policies that take care of a portion of their medical costs. Nevertheless, there can still be significant out-of-pocket expenses like deductibles, copayments, and coinsurance. For those who lack insurance or have insufficient coverage, they are solely responsible for the entire cost of medical treatment, which can make it even more difficult to handle financially. Sometimes, people are faced with tough choices, like reducing important expenses, working extra jobs, or getting loans to pay for medical costs. This can impact their financial security and well-being in various ways.
...gency (CCMA) (2012), the main reasons people fail to pay a debt were poor financial planning (25%), high medical expenses (22%), business failures or slowdowns (15%), loss of control on the usage of credit cards (13%), and loss of jobs or retrenchments (10%). Therefore, Lea, Webley and Walker (1995) found that debt with economic, social and psychology factor are closely related.
Mortgages, car loans, student loans, and having children, are all situations that can drive families to the overwhelming doom of debt. Debt is mostly overlooked for the simple reason that it may be considered normal. Certain types of debt, like car and mortgage payments, are almost always expected. Debt is sometimes very difficult to evade, especially if money is not managed sensibly. Many families accumulate debt due to overspending, medical bills, and unemployment.
Another cause of divorce is due to financial difficulties. Budget handling and debt arising out of low or reduced income is an example of a financial cause of divorce. Fighting over how to budget becomes a major problem in the marriage. In most cases, one of the partners is not content with the overspending habits of the other individual. This will cause a stressful situation which leads to an unwholesome relationship and result in a divorce. A couple struggling to make ends meet has the potential to cause conflict within the marriage. How the economy is today, it seems we are fighting more and more to keep our jobs.