Sentences with phrase «with household debt»

With the rate of home ownership now close to 70 %, and with household debt at a record high, much of the financial health of Canadian households is inextricably linked to home values, making it the kind of dominant concern that not only affects household finances, but consumer psychology and confidence.

Rising balances and credit limits may be fine for now, but with household debt rising faster than GDP, there could be consequences in the next few years.

«However, the long - run negative effects of debt eventually outweigh their short - term positive effects, with household debt accumulation ultimately proving to be a drag on growth.»

With the rate of home ownership now close to 70 %, and with household debt at a record high, much of the financial health of Canadian households is inextricably linked to home values, making it the kind of dominant concern that not only affects household finances, but consumer psychology and confidence.

Benjamin Tal, an economist with CIBC, reported in a study earlier this year that heavy borrowers, those with household debt - to - gross income ratios above 160, accounted for 34 % of all borrowers compared to 26 % in 2007.

Not exact matches

«While China's total debt growth slowed notably in 2017 with a drop in the non-financial corporate debt - to - GDP ratio largely offset by rising household and financial sector debt,» the group said.

Mortgages aren't the only debt Canadians are saddled with, however, and the rates on credit cards, car loans, and home equity lines of credit could tick up as well, further increasing a household's overall carrying costs.

The house - price bubble, combined with record levels of household debt, represent the biggest threat facing the Canadian economy; the sooner real - estate markets mellow and Canadians lower their debt burdens, the better.

«We continue to see the household sector as accident - prone, with a complacency toward debt which could prove disruptive to the economy,» wrote HSBC Canada's chief economist recently.

Forget about household spending: with debt at record levels, consumer spending on new goods and services will be restrained.

«When house prices declined, ushering in the global financial crisis, many households saw their wealth shrink relative to their debt,» its authors observed, «and with less income and more unemployment, found it harder to meet mortgage payments.»

Comments: «We are entering the fifth year post «The Great Contraction» with considerable progress made in deleveraging the financial and household sectors; however, the most complex stage - stabilizing public sector debt - remains a formidable challenge.

Among those households with credit card debt, the average owed is $ 15,863, according to a May analysis from NerdWallet.com using government data.

But for most households, high debt is the disease, not the cure, and adding more debt to «stimulate spending» is like trying to put out a fire with gasoline.

At least some households would use the funds to pay down debt, meaning the money would flow to the banking sector anyway, but with one critical difference: household debt would actually decline, leaving household balance sheets in better shape and owing less interest every month.

«International research has found that highly indebted households cut back their spending to a greater degree in response to declining house prices than those with lower debt levels,» he said in a letter to the House finance committee this month.

A 2015 NerdWallet study found that the average U.S. household with debt carries $ 15,310 in credit card debt and $ 132,086 in total debt.

Subjects touched upon by Poloz during his speech and the ensuing round of questions also included fostering ties with the emerging economies of India, China, and Brazil, and the growth in household debt among Canadians.

That includes an average $ 16,748 among households with credit card debt, and $ 49,905 among student loan borrowers.

By contrast, debt for the middle class — households with incomes from $ 43,501 to $ 69,500 — rose 12.5 %.

Examination of data from the Federal Reserve's Survey of Consumer Finances — the central bank's effort to examine the financial conditions of American families — by two Northeastern University scholars shows that households with more student debt are less likely to start businesses than other households.

BMO says 84.4 per cent of households headed by young people owe some form of debt, compared with 82 per cent of the same households in 1984.

He says the higher rates have helped keep the accumulation of household debt lower than it otherwise would have been had Canada continued with government belt - tightening approaches of the past.

The Fed's most - recent Survey of Consumer Finances, released in October, showed an increase in the number of U.S. households with credit card debt: 43.9 % in December 2016 compared with 38.1 % in December 2013.

Households with any kind of debt owe $ 133,568 (including mortgages), on average, the data analysis found.

And when you remove debt - free households from the equation — people with either no debt or no credit to speak of — the average debt load was more than double that, at $ 15,609.

It sounds tempting — especially with the Bank of Canada warning last week that household debt continues to grow at dangerous speeds in this country.

Basically, he proposes that the Feds send a check for $ 2000 each to the bottom 80 % of taxpaying households (all 175 million of them) with the caveat that the entire $ 2000 must be spent on debt reduction (student loans, credit cards, mortgages etc.).

To date, households have been coping reasonably well with the higher debt levels.

While the central bank is reluctant to raise rates too fast with $ 2.1 trillion in outstanding household debt, increases are inevitable.

The only indicator that has grown apace with GDP for the middle class is household debt.

I believe that Canada's high house prices in relation to incomes, combined with record household debt levels and overinvestment in residential construction, will cause a severe correction in the real estate market.

This brings me to a third plot line: that is, how we deal with the higher level of household debt and higher housing prices, especially in a world of more normal interest rates.

Risks associated with the Consumer Discretionary sector include, among others, apparel price deflation due to low - cost entries, high inventory levels and pressure from e-commerce players; reduction in traditional advertising dollars; increasing household debt levels that could limit consumer appetite for discretionary purchases; declining consumer acceptance of new product introductions; and geopolitical uncertainty that could impact consumer sentiment.

Even achieving the present trajectory of domestic demand that we have, which has left the economy with a bit of spare capacity, has involved some net rise in the ratio of household debt to GDP.

The problem with this solution is that it is politically attractive (no wealth transfers from the elite to ordinary households) but it does not fundamentally address China's debt problem, but rather simply rolls it forward.

Meanwhile, delinquency rates for each form of household debt declined, with about 8.1 percent of outstanding debt in some stage of delinquency, compared with 8.6 percent the previous quarter.

Millennials have grown up in the shadow of the Great Recession, are saddled with higher education debt and housing costs, and are forming households later.

«The bank expects trend growth in household credit to moderate further, with the debt - to - income ratio stabilizing near current levels.»

If there's one word that defines the Canadian economy at the moment, it's uncertainty — what with the shaky housing market, towering household debt loads and, of course, a certain orange - hued world leader rattling the sabre of trade wars.

He turned to Tiff Macklem, the bank's senior deputy governor (who is, incidentally, getting more attention these days as a leading candidate to succeed Carney when he departs next June to take over the Bank of England) to flesh out the household debt picture with details.

However, I suspect that spending by the average household, strapped with a record level of debt, will continue to contract — especially spending on discretionary items.

With many households increasingly reliant on debt and a lower savings rate, some families may need to bank the incremental income from the recent tax cut.

The speed with which China's GDP growth slows in 2013 will tell us a lot about how determined Beijing is to rebalance the economy in such a way that growth is driven more by higher household income and consumption and less by investment funded by rising government and government - related debt.

«A slight decline in real - estate related balances, consistent with broader housing market developments, contributed to a flat quarter for total outstanding household debt,» Donghoon Lee, senior economist at the New York Fed, said in a statement.

Until we understand this do not expect the global crisis to end anytime soon, except perhaps temporarily with a new surge in credit - fueled consumption in the US (which will cause the trade deficit to worsen) and more wasted investment in China (which, because it is financed with cheap debt, which comes at the expense of the household sector, may simply increase investment at the expense of consumption).

In other words, households with greater income and assets may be able to take on more debt.

However, this is changing, and the increase in the level of household debt over the past decade is a major shift, with significant knock - on implications for consumption.

With household and government balance sheets still weighed down by a large debt overhang, demand for new loans is extremely weak despite near zero short and long term interest rates.

According to ValuePenguin, * the average balance - carrying household had more than $ 16,000 in debt as of May 2016, with total outstanding consumer debt hitting $ 3.4 trillion, including $ 929 billion in revolving debt.