With Canadian household debt at an all-time high and the cost of carrying that debt at an all-time low, it is a good time to consider how our purchases affect our budgets today and tomorrow.

In the article linked below from the Huffington Post something stands out to me as unsustainable.

We learn in the article that in the third quarter of 2014 Canadian average household debt reached a record 162.6% of household disposable income. This happens to be a record percentage of household disposable income in Canada, however, this is not what really stands out about this article.

We also learn that the amount of interest paid on this household debt, as a percentage of household income, declined to 6.8% representing an “all time low” according to Statistics Canada.

So, with debt levels at an all-time high, the cost of carrying that debt is at an all-time low.

This leads me to believe that Canadian households are in a precarious position with little ability to withstand any sort of increase in interest rates much less an illness or loss of employment.

Part of budgeting is looking ahead and ensuring you can afford your purchases today and tomorrow – something to keep in mind this holiday season.