Canadian household debt climbs faster than their income

According to Statistics Canada, the amount Canadians owe to their incomes increased in the fourth quarter of last year as their debt growth slightly outpaced their income growth.
The agency reports that household debt in the credit market as a share of disposable income rose to 178.5 per cent in the fourth quarter. This compares with a revised proportion of 178.3 percent in the third quarter.

In other words, there was $ 1.79 in credit market debt for every dollar of household disposable income

Credit market debt, which includes consumer credit and mortgages and non-mortgages, totaled close to $ 2.21 billion in the fourth quarter.

Mortgage debt reached $ 1439.9 billion, while consumer and non-mortgage loans totaled $ 769.4 billion.

The household debt service ratio, which is the total of mandatory capital and interest payments as a proportion of household disposable income in the credit market, increased to 14.9 per cent in the fourth quarter, compared with 14.7 percent in the third quarter.

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