REPORT: Canadian Household Debt Ratio Rises In Q2

For every dollar of income, Canadians owe $1.69.

Canada’s household debt ratio – already the highest on earth – rose in Q2 to 169.1%.

That’s an increase of 0.8% from the ratio in Q1, which was 168.3%.

There has been a slight decline in the household debt ratio compared to Q2 of 2017, when it was at 169.7%, however the ratio is still at an extremely high level.

The total amount of household debt is $2.16 trillion, larger than our GDP.

Household debt is considered a key indicator of economic vulnerability, as it makes consumers far more vulnerable to interest rate hikes and/or economic downturns.

And with government policies like restrictive regulations, and the carbon tax making life even more expensive, more and more Canadians have turned to debt in order to maintain their standard of living.

Of course, elevated debt levels can’t be sustained forever, and Canada faces an economic reckoning unless we get a government that puts more money back in the pockets of Canadians.

Spencer Fernando

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NancyW

Once again, stated very well Spencer, thank you, we need a different government for Canadians.

Juan Galt

With Trudeau in charge, whale oil beef hooked!

shawn harris

How very true indeed. Household debt is slowly destroying the economy, our lives, and our children’s future. The single biggest reason for all of this debt is the fact governments , through high taxes, uncontrolled spending and a belief that tax dollars solve every problem, has left the taxpayers of Canada with very few options to maintain their lifestyles. Governments at all levels, think that by spending more money on the public, for percieved wants and demands,and to solve problems will buy them votes , to keep themselves in office. And when performed by politicians at all three levels, the… Read more »