Sunday, June 20

Canadians’ debt levels are falling

Posted ago 32 minutes

(Photo: 123RF)

The amount of money Canadians owe relative to their income fell in the first quarter, compared to the end of last year, Statistics Canada reported on Friday.

According to the federal agency, household debt in the credit market as a proportion of their disposable income fell to 172.3% in the first quarter on a seasonally adjusted basis.

In comparison, this ratio reached 174.0% in the fourth quarter of 2020, as the increase in household income exceeded that in debt.

This means that Canadians owed an average of $ 1.72 in credit market debt for every dollar of household disposable income.

At the same time, the household debt service ratio – the ratio of total obligatory payments of principal and interest on credit market debt to disposable household income – fell to 13.45%. against 13.55% in the fourth quarter.

The decline came as the seasonally adjusted household savings rate reached 13.1% in the first quarter, compared to 11.9% in the last quarter of 2020.

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