For over two decades, tuition fees in Canada have been on a rise. Currently, the growth of tuition fees is double the country’s inflation figure, which increases the financial burden of education all of us keen on learning.
Indebting oneself early in life is a serious burden to bring upon oneself. This means that all your outlooks, your future as far as you can see, contain some kind of a debt repayment schedule you must stick to.
The necessity of paying back your liabilities reduces your discretionary income – what’s left in your pocket when you’ve settled all your necessary recurring bills. In the more extreme cases, qualifying for a mortgage sufficient to buy you a worthy apartment or house may be nearly impossible
According to Statistics Canada, it lasts 7.4 years on average to get rid of tuition loans. This is a pretty extensive timespan, and it is only the average, so there are bound to be students who take even longer to do away with this immense weight. Hence, such person can hardly afford a mortgage until she or he is thirty.
Keeping a strong credit rating is thus critical. Stable rating may ensure that higher amount of financing, when asked for going may be obtained on better terms and more easily in general.
Well, you desperately want to become an owner of a real estate property? Mortgage is not that bad, however, since as soon as you’ve moved into your own dwelling, you have no rent any more. In effect, then, your mortgage is actually not that much harder on your budget if you have been renting before. Also, there is no need to purchase life insurance until one has kids or a dependent spouse. Hopefully, the university degree will give the ambitious young person more chances of getting accepted for a more lucrative vocation and let her or him achieve financial self-sufficiency sooner.