Is there a word for fear of debt? “Call it debt phobia,” says Lorne Bozinoff, president of Forum Research Inc., which found, in a poll commissioned for the Financial Post, that 55% of Canadians do not believe personal debt can be used to build wealth.
They’re fine with some debt, 76% of respondents saying there is such a thing as good debt. I guess that can be categorized as money used for buying a house or an education. But what about starting a business, buying a car to get you to it, and borrowing to invest to take advantage of low interest rates, high dividend yields and preferential tax treatment?
Half of Canadians in our survey said debt should not be used for investment purposes, even though the interest on such loans is tax-deductible and any capital gains achieved are taxed at a lower rate.
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