Canadian Consumer Debt Still Rising
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Canadian Household Debt Rises to 169.1%

According to Statistics Canada, in the second quarter of 2018 Canadian households now owe more, relative to their income, even as mortgage borrowing continues to decline.

The agency went on to report that as a proportion of household disposable income, credit market debit has jumped to 169.1%. Marking a continued trend of debt outpacing income.

Put another way, for every dollar of household disposable income, Canadians now owe $1.69 in credit market debt.

This is a rise from the first quarter which was at 168.3%.

Although household debt has long been considered a key vulnerability in the financial system by the Bank of Canada, the central bank has noted earlier in the year that the risk has lessened.

Even as consumer demand for credit increased, the decline of mortgages came as the housing market slowed as a result of tighter rules and rising mortgage rates.

Replies to this Post

  1. Anika Kiernan says:

    And they aren't kidding. In my household we have 4 kids and everyone is drowning in credit card debt. I think the problem is that they make it way too easy for anyone to have it which spurs most of us to spend, spend, spend.

  2. Presley says:

    Can you imagine these people's credit scores? It must be in the gutter.

  3. Waylon Pine says:

    Although its pretty high, it's at least not a record high for Canada. And certainty not as catastrophic as the US levels.

  4. Denzell says:

    That's news to me, i don't know anyone that has any real disposable income debt. Unless they aren't being honest to me.

  5. Marcus P. says:

    It's about time the obsessive need for buying a home via mortgages started to decline. The bubble was getting ridiculous out here in the West.

  6. Tysen Shaw says:

    Every first world nation has consumer debt. This is just a natural occurrence of a consumerism society.

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