The growth of
household debt Number of mortgages delinquent 60 or 90 days Number of car loans that are delinquent Growth of student loans Delinquent student loans
The household debt numbers are rising across the United States and Canada, and Canadians are leading in indebtedness with a debt - to - income ratio at a record 1.71 % — so for every dollar of household income there is $ 1.71 in credit debt.
These rock - bottom rates has implications for Canada's rising
household debt numbers.
We all know that the rock - bottom interest rates directly impact Canada's rising
household debt numbers.
Not exact matches
On the
household -
debt - to - disposable - income ratio, some experts see it as just one
number out of many and insist that consideration must be given to the composition of the
debt, such as how much of it is high risk.
Even if it is uncertain where the danger zones begin for the
household -
debt ratio, the briefing note to Morneau said there are «clear negative consequences» for the economy if the
number gets too high or too low.
Any
number of shocks could send Canada's house of cards tumbling, the bank says, particularly higher borrowing costs that pinches
households already carrying record high levels of
debt.
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.
To obtain this figure, we looked at data reported by the Federal Reserve for Outstanding Revolving
Debt - we then divided that
number by the
number of card - carrying
households each year.
In recent years, while the
number of people holding credit - card
debt has been decreasing, the average
debt for those
households carrying a balance has been on the rise.
Much as I think the expansion has a good deal further to run, I suspect that a significant
number of
households have chosen a
debt level which makes sense in good times, but does not take into account the fact that bad times inevitably will occur at some time or other.
But only a miniscule
number of Canadians carry credit card
debt — as of August 2015, it made up just five per cent of our overall
household debt, according to the Canadian Bankers Association.
If those
numbers sound high, or even if they don't, understand that in the U.S. the average
household credit card
debt was $ 16,748 in 2016.
To obtain this figure, we looked at data reported by the Federal Reserve for Outstanding Revolving
Debt - we then divided that
number by the
number of card - carrying
households each year.
This
number is based on the mean U.S. card
debt for indebted
households which currently stands at approximately $ 15,000, an average APR of about 17 %.
In the United States, the average
household debt ballooned by nearly 8 % in 2017, and the
numbers continue to rise among all age groups.
The average credit card
debt by
household of $ 15,799 clearly is skewed by a relatively few in
number, very large balances, since only 15 % of cardholders have a balance over $ 10,000.
More American
households are rolling that
debt from one month to the next than before the recession, and the
number of open credit lines is set to soon surpass the previous high in 2008.
In the fall, Canadian
household debt reached 165 per cent of disposable income, and all signs point to that
number rising in 2016.
According to the most recent
numbers,
household debt to disposable annual income is above 150 percent... and rising.
The latest round of
numbers has shown that
household debt is now at a record 152 percent of disposable income.
The average American
household has $ 5,700 in credit card
debt, but when you exclude
households that have no credit card
debt, that
number rises to over $ 16,000.
According to a recent Globe and Mail article which references Statistics Canada
numbers, «the total amount of
debt held in
households led by people aged 55 to 64 almost quadrupled between 1999 and 2012, while the level for the overall population did little more than double (these are inflation - adjusted
numbers).
According to recent Statistics Canada
numbers, mortgage
debt now accounts for 65.5 % of all
household debt.
As the economy gradually gains steam, consumers are taking out larger
numbers of loans and slowly increasing
household debt, research shows.
This
number is based on the mean U.S. card
debt for indebted
households which currently stands at approximately $ 15,000, an average APR of about 17 %.
For example, almost 47 million Americans live under the federal poverty line, and the same
number have average
household credit card
debt of $ 16,000.
The average American
household has $ 5,700 in credit card
debt, but when you exclude
households that have no credit card
debt, that
number rises to over $ 16,000.
The survey additionally found that a growing
number of millennials and younger boomer buyers have children living at home; student
debt is common among Gen X and boomer
households; more millennials are buying outside the city; and younger generations are more likely to use a real estate agent.
While rising rents and lack of inventory might nudge renters into buying a home, National Association of Realtors ® Chief Economist Lawrence Yun points out that tight credit standards, student
debt, and the growth of multigenerational
households are contributing to the lowest
number of first - time home buyers in decades (as shown in the 2014 NAR Profile of Home Buyers and Sellers).