Financial ‘experts’ up to their earlobes in debt

This is part of a Globe series that explores our growing dependence on credit – from the average household to massive institutions – and the looming risks for a nation addicted to cheap money. See:  A house-rich couple confronts looming cash crunch.

They both work in the financial services industry and wife says her plan is to sell some more insurance policies to keep them out of bankruptcy.  Sounds about right.  No doubt they give excellent advice to their clients!!!  To wit:

Vicky and Sandhya Bhardwaj are expecting their first child in August. Once their son arrives, the couple will be living dangerously close to their financial edge.

Mr. Bhardwaj’s entire paycheque – he earns $73,000 a year – goes toward the mortgage payments on the four-bedroom, five-and-a-half bathroom Mississauga house they bought in 2011 for $747,000. Mrs. Bhardwaj’s salary of $55,000 covers everything else, from utilities, groceries, and gas and insurance on their cars, to the interest on their two lines of credit and credit card.

“I’ve made a spreadsheet of our expenses … and right now, we are $1,000 a month short for what we will need to live on, once my wife is on mat leave,” says Mr. Bhardwaj, 39.\

The couple, both of whom work in the financial services industry, tried to make up for the looming cash crunch by applying for another line of credit, but their already large debt load disqualified them. “We knew we could not get any more money from the house, other than through our existing line of credit,” he says. Other options – another credit card or borrowing from family – are their last resort.

Instead, Mrs. Bhardwaj, 33, is trying to sell some additional insurance policies. If everything goes according to plan, she could earn between $10,000 and $15,000 in commissions.

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