The level of debt that Canadians owe in relation to their income rose in the second quarter, as the increase in debt outpaced income growth, new data from Statistics Canada suggests.
The proportion of household credit market debt relative to disposable income increased to 174.9 percent on a seasonally adjusted basis, marking an increase of 1.1 percent, StatCan reported this week.
“In other words, there was $1.75 in credit market debt for every dollar of household disposable income in the second quarter, considerably lower than the record $1.86 in the fourth quarter of 2021,” the agency said.
The household debt service ratio, which is defined as the total required payments of principal and interest on credit market debt relative to disposable income, grew to 14.41 percent during the quarter, up from 14.37 percent….