Quote:
Originally Posted by DoubleF
Has anyone else felt more average people are more open to taking on larger debt loads right now when interest rates are higher than when interest rates were lower?
And I'm not talking about for necessity reasons. I'm talking for frivolous spending reasons.
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For a lot of people, higher interest rates are still an abstraction. As others have remarked, after 20 years of low interest rates many Canadian adults today have never felt the sting of debt servicing costs. It will take some time of feeling that sting before it will change behaviour for a lot of people (ie saving to pay for most of a new car in cash rather than taking out a 72 month loan).