Household Debt Rising
Household Debt is now bigger than Canada’s GDP.
Household debt in Canada continued to increase for the second quarter of 2016 and as a result this debt has surpassed the current Canadian GDP. A look at some of the recent data from Statistics Canada for this year shows an increase in the first two quarters.
2016 Household Debt Levels
- 2016 Quarter 1: 98.7
- 2016 Quarter 2: 100.5
The recent mortgage rules change seems to have made a slight change in the overall mortgage rates. Mortgage rates in Canada have stopped increasing. The level of mortgage rates to household debt is at 65.6%, according to the latest data from Statistics Canada.
Once again, we are seeing that credit debt is increasing slightly higher on average over Canadians increase in disposable income, leading Canadians to increase their overall debt levels. Credit Debt increased by 2%, while the average disposable income increased by 0.5%
2016 Household Debt to Disposable Income
- 2016 Quarter 1: 167.37
- 2016 Quarter 2: 169.85
Essentially what we are seeing is that for every $1 Canadians earn, they are spending $1.70. This has yet again increased over last year’s data which according to StatsCan for 2014 fourth quarter, Canadian debt to income ratio is was 163.3%,
While the Average Canadian Debt is rising, looking for ways to help curb your spending, reduce your debt and work to save more for your future can be a good start to re-structure your financial future. If you find you are at a point where you are not sure what to do about your financial situation and your debt is getting out of hand, it may be time to get professional advice from a Trustee. Call our offices at (416) 498-9200 for a free initial consultation. We can help find the best solution for your particular situation.