I put this into the Retirement Planning section because it worries me when individuals are getting comfortable holding debt for long term, or for the rest of their lives.

Not only are interest rates expected to rise, using your credit cards as an income supplement is ALWAYS a bad idea. Canadians spent 3.4% more over the christmas holidays in 2009 than they did in 2008.. I am surprised by that trend.

This can't be good for retirement savings. People are constantly spending more than they can afford, and the credit card payments will be eating into their retirement savings over the long run... bad practice folk!

The article says, Canadians have become increasingly comfortable with taking on more and more debt.... At the same time, are Canadians becoming more and more comfortable with putting money aside for retirement?

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Winnipeg Free Press
The governor of the Bank of Canada, Mark Carney, told Canadians last month that we may have a false sense of security when it comes to debt. He warned us that the historically low interest rates will inevitably rise, and when they do, some of us may be "financially vulnerable" because we've taken on too much debt.

But with the yuletide season behind us, and outrageous credit cards bills pending, some Canadians may wish they had paid more attention to Carney's sobering advice.

Of course, spenders' remorse is nothing new at this time of year. The executive director of Community Financial Counselling Services in Winnipeg says it's a familiar feeling for many during the post-holiday hangover.

Apprehension aside, Canadians have become increasingly comfortable with taking on more and more debt.

"People used to be able to put lots of money away, but now, people seem to be supplementing income with debt," Hamza says, adding this is a much different attitude than 30 years ago.

"The mindset has shifted from people thinking about purchases in terms of whether they can afford the item to whether they can afford the payments," he says.

http://www.winnipegfreepress.com/opinion/columnists/holiday-debt-hangover-about-to-strike-81060052.html