With the abundant holiday season spending at a close, the damaging debt of Canadian consumers still lingers. Retail sales were up four per cent in Ontario this Christmas compared to the same period last year, and the average household debt for Canadians is at a record high of $100,000.
For Associate Professor Rod Duclos, this debt is a real concern, as most consumers are spending more than they can afford. In an interview with CTV News, Duclos provided some tips for those looking to spend less and keep track of their spending. Duclos suggested Canadians force themselves to reach for cash when making a purchase.
“Paying in cash is psychologically more painful than paying through credit cards – it’s more virtual. So people spend less if it’s more painful,” he said.
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