The agency says household credit market debt as a proportion of household disposable income rose to 181.7 per cent on a seasonally adjusted basis in the second quarter, up from 179.7 per cent in the first quarter.
In other words, there was about $1.82 in credit market debt for every dollar of household disposable income in the second quarter. The increase came as households' disposable income increased 1.0 per cent, but household credit market debt rose 2.1 per cent. Statistics Canada says, on a seasonally adjusted basis, households added $56.3 billion of debt in the second quarter including $48.7 billion in mortgages.
The household debt service ratio, measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, was 13.63 per cent in the second quarter compared with 13.34 per cent in the first quarter.
Yes of course no one xan live anymore because of inflation it's beyond over the top
We are noticing more people paying for groceries with a credit card...probably should have bought the Civic instead of the 70k V8 pick up.....
bankofcanada BRING DOWN INTEREST RATE
Don't spend on credit cards unless you can pay off the whole shot every month. Otherwise your credit score will be in the dumpster and you'll be taking out payday loans at exorbitant interest rates.
Default, bankruptcy coming to a bank near you
Trudeau Canada
Has anyone, especially liberal supporters, ever asked if Trudeau is directly responsible for this?
Debt deflation spiral --- more and more income will be directed away from consumption towards loan repayment (money destruction). This in turn will reduce investment, employment and total income.
Yes when your paying $100 more a week to feed a family of 4 that money has to come from somewhere.
Yet Trudeau keeps saying he is making life ‘more affordable’ 😆
LiberalParadise
Well no shit. Increased costs in everything seems to have increased debt as well. Go figure
No fucking shit… your bank rupturing everyone with the high gas and food.. the 2 most things we need to fucking live
Time to say good bye JT
Are we surprised 🥲 the rates go up but not wages .. this will never catch up 😡
One quick look at the comments on this article shows just how poorly people understand the relationship between debt levels and interest rates. It's no wonder so much of the population doesn't know how to manage their debt.
No 💩 Captain Obvious!
Only the beginning
Thanks Trudeau
Almost like a triple whammy of inflation, interest rate hikes, & significant number of formerly WFH employees being forced back into commuting to work is a huge drain on everyone’s bank accounts.
Thanks captain obvious 🤦🏻♂️
Not surprised, and expect to see the same over the next four quarters.
interest rates bringing down costs and borrowing high interest rates increase energy costs, which apparently increase everything else from food to restaurants (like they have made enough money with hiking prices through COVID). Working Canadians in debt!! JustinTrudeau
Iceberg.... right ahead 😬
Debt-to-income will keep rising through 2022-23 with the BOC continuously raising rates. The true pain hasn't been felt yet. Watch how much less consumers spend at Xmas this year. Record lows. 2023 is going to be a bloodbath for retailers and restaurants not named Tims or McD's.
Indeed
This is the “Terrible 20s”
This is what happens when you jack up interest rates significantly in a short period of time. Bankruptcies are sure to follow. It’s not unintended.
But JT said he borrowed money, that we don't need to