Already Dangerous Levels Of Household Debt Rise Again As Middle-Class Canadians Struggle

Household debt to income ratio has risen yet again.

Canada’s already record high, and dangerous, levels of household debt are rising once again, another sign that Canadians are struggling in this economy.

According to Statistics Canada, the debt to income ratio is now 174%, up from Q1 of 2019 when it was 173%.

Even worse, BNN Bloomberg notes that the cost of servicing that household debt is also rising:

“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, edged up to a record 14.93 per cent of household disposable income in the second quarter compared with 14.87 per cent in the first quarter.”

As many have pointed out, Canadians are falling further and further in debt just to try and hold on to our standard of living, which is a clear sign that the cost of living is surging out of control, and is rising much faster than the government claims.

So, while government connected elites may be doing well, the vast majority of Canadians are struggling.

Spencer Fernando

Photo – YouTube

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Shawn Harris
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Shawn Harris

Trudeau has bungled the strong , growing and prosperous economy that Harper left behind. And produced a hollowed out economy that has no room to grow or prosper. Thanks to his anti business, anti investor messaging and high taxes, including the carbon tax. In Canada, the low interest rate economy has produced a flood of easy money, that has trapped consumers in a spiral of ever increasing debt. That has widened the gap between the wealthy elites and those who were just getting by. Now, most jobs are low wage “Mac- Jobs”, that barely allow anyone to live, let alone… Read more »

old white guy
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old white guy

I am not sure that debt matters any more. The entire world runs on debt. Money is just a keystroke and real wealth is nebulous. The US owes more real and potential debt than the entire planet and yet the dollar is the international currency. Canada is driving it’s citizens in debt by giving the socialists the things they think they are owed without generating any wealth to pay for their foolishness. Who cares how much is owed, you die and forget about it because no one really has the money to pay.

Allis
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Allis

I agree with your statement re catering to socialist thinking people who fail to contribute to society. Unfortunately i have to disagree with your statement debt doesnt matter. It does matter when a country and lets use Canada as an example. For every dollar used to pay interest on the debt causes two eactions. Firstly those monies could be used provide the basic services many lack to receive ex health care. Secondly govts reaction is to raise taxes in many forms to counter loss revenues to interest payments. Every debt I do have incurred in my life had to be… Read more »

old white guy
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old white guy

Repaying debt is so passe. We have not repaid a single dime of the debt incurred by Trudeau senior, and what year was that? The currency is inflated annually and the interest on the debt is paid with inflated currency. We will never pay the government so why the hell should anyone else pay theirs.

Bruno
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Bruno

During the eighties we were in dept the government invented then introduced GST.When we paid the debt they never retracted GST it was to good for the government to keep it.Now there is a new invention Carbon Tax that will never end it will be another bonus for the government to keep that Tax going.They promised to help Middle Class. Where is it?The housing price went up the rent,the gas ,food ,clothing etc,etc.We must be real fools to believe everything the government tell us. I know and my pocket tells me if I live better I don’t need the government… Read more »