Canada’s household debt burden is edging lower, an indication that people are hesitant to take on loans at higher interest rates.
The ratio of household debt to disposable income fell to 175.5 per cent in the second quarter from 176.7 per cent in the first quarter, based on seasonally adjusted figures published Thursday by Statistics Canada. It marked the fifth consecutive quarterly decline.
Put another way, the average household owes around $1.76 for every dollar of disposable income. The ratio peaked at 185.4 per cent in the fourth quarter of 2021.
“Households remain under pressure from rising rates but have adjusted their behaviour, pushing debt ratios consistently lower,” Benjamin
→ Continue reading at BIV