Statistics Canada said Monday, that Households, on average, owed 1.64 Canadian dollars for every dollar of after-tax income earned.
The ratio of household credit market debt to personal disposable income in the July-to-September quarter rose to 163.7% from a revised 162.7% the previous quarter, Statistics Canada said Monday. That means households, on average, owed 1.64 Canadian dollars for every dollar of after-tax income earned.
That means households, on average, owed 1.64 Canadian dollars for every dollar of after-tax income earned.
After-tax income advanced 0.8% in the period, while borrowing rose 1.4%. The country’s net worth declined 1.3% to C$9.49 trillion ($6.91 trillion) in the third quarter, reflecting lower commodity prices. Excluding natural resources, net worth rose 1.7%.
The Bank of Canada will offer a fresh take on risks posed by rising debt loads on Tuesday in its latest review of the financial system. In its most recent policy decision, in which it left its key interest rate unchanged, the central bank noted that vulnerabilities in the household sector “continue to edge higher.”
The housing sector has been one of the few bright spots for the Canadian economy in 2015, with around 80% of the new borrowing in the third quarter in mortgages as consumers took advantage of low interest rates. That helped offset the negative fallout from a commodity-price rout.
If you have any questions about this or other aspects of bankruptcy or consumer proposals you can set up a confidential evaluation with a Bankruptcy Canada Trustee, who are in every province and territory in Canada.