This is a pretty serious question that you need to ask yourselves.  According to this article I read on www.globalnews.ca there is a chance we could be going there, and the key is debt levels…personal debt levels.  My question to you is, what are you doing about your current debt situation?  Here are some simple ways of paying your debt of faster:

1)  Don’t spend more than you make…SERIOUSLY!  When you are out window shopping, see something you like, and know you don’t have the money today, but get paid in a couple days…THIS DOES NOT MEAN PUT IT ON YOUR CREDIT CARD.  It means, walk away.

2)  Make sure you debt level is lower this month, than it was last month.  Even if it $1.00.  Obviously you would like to pay your debts down faster than that, however, if even in the worst months if your debt load is even $1.00 lower than it was the month before…you have made progress.

3) Work with a professional to manage your debt.  Most people will take out $10,000 in RRSP’s and get a Financial Planner to manage their assets, but then carry over $300,000 in debt and not have anyone manage that…seems a little silly to me.

If you are carrying any debt at all, including a mortgage (a mortgage on your home is still bad debt!), please give me a call so we can help you protect yourself against another recession.

Over the last couple of months, I have more and more clients taking a step back from real estate.  With the threat of a “correction” and price flat-lining…people are weary should they even buy at all right now.

Like many other markets, I think where people can get themselves in trouble is short term…making the “quick buck”…however, as history shows us…Real Estate is a solid long term investment.

With all of the doom a gloom about Real Estate, I like how DBRS who analyzes risk, say that the Canadian Real Estate market, looks bright, in this article in the Globe and Mail.