OTTAWA, May 26 /CNW Telbec/ - Robert Abboud, a Certified Financial
Planner (CFP) and author of the book, No Regrets, A Common Sense Guide to
Achieving and Affording Your Life Goals who 2 years ago warned of the upcoming
Spendemic is sounding the alarm again.
Canadians may not yet realize that the recessionary effects are going to
be felt across the board. They need to refocus their minds towards paying down
their debts not borrowing more. Canadians' savings rates are still at historic
lows while spending rates are still at historic highs. The combination of
these two elements could prove financially lethal.
In the early eighties Canadians owed about $0.52 for each dollar of
disposable income, by 2007 they owed $1.27(1). With unemployment expected to
top at least 10%, how many Canadians could afford to live for 6 months if they
were laid off tomorrow?
Abboud believes Canadians don't understand how this excessive spending
will affect them down the road. "Consumers are constantly bombarded by "don't
pay a cent" ads. I don't think people realize how long it takes to pay off
A typical credit card debt of $10,000 would take 20 years to pay off at
$150/month. Over the lifetime of the debt it would cost almost $26,000 in
Abboud says people need to get a handle on their month-to-month finances
and put everything into perspective. Abboud's book, No Regrets, offers up a
tried and true solution to this crisis called The Envelope System. The
Envelope System is helping Canadians live in the best place in the world,
within their means.
(1) Bank of Canada
For further information:
For further information: Robert Abboud, CFP, (613) 841-8550,