The keynote speaker at the Credit Education Week Professional Day was Mr. David Chilton, Author, The Wealthy Barber.
Mr. Chilton took the stage and talked about one of the biggest challenge consumers face today – everyone is cheering for you to keep on spending! He provided numerous insights for us to consider and take action.
We want to share these with you:
- Always pay yourself first, this is the most important thing you can do.
- Keep in mind that banks never say, oh we are lending too much and should cut back. Banks make money lending so why would they stop!
- Consumers need to restrain themselves from borrowing.
- A personal line of credit is like getting hooked on drugs. Canadians treat a line of credit like a second income and forget that they need to pay it back.
- There are simply too many people carrying too much debt.
- People have maxed out their borrowing at current interest rates, when rates rise there is going to be lot of problems.
- When taking on debt for appreciating assets make sure it can and will be retired before you are.
- When borrowing make sure that your calculations are on after tax dollars, and that the payments will not impact your savings plan and the ability to have fun!