TORONTO — Canadian
household debt hit a record high during the third quarter, as it grew at a faster pace than disposable income, according to the latest figures from Statistics Canada.
I've left out the fact that
household debt hits a new record every month.
Not exact matches
Earlier this year, the
household debt - to - income ratio
hit another record of 167.8 per cent.
Unsurprisingly, low - income
households were among those hardest
hit by the recession, and were more likely to report significant increases in
debt.
A recent report by the Federal Reserve Bank of New York revealed
household debt has
hit a new high.
U.S.
household debt, meanwhile,
hit a new high of $ 13.15 trillion in the final quarter of 2017.
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.
Statistics Canada, the country's data agency, said the ratio of
household credit - market
debt to disposable income
hit 163.4 % in the April - to - June period, an increase from the upwardly revised 161.8 % recorded in the first quarter.
In order to maintain demand and to
hit their inflation target, Central Banks are encouraging
households and corporations to go ever further into
debt.
And it's been very weak since 2008; we've now
hit the point now where the private sector, the
households, are so heavily in
debt that they just can't continue taking on new or additional
debt to make credit expand enough to drive the economy.
Statistics Canada in March reported that the country's average
household debt - to - income ratio
hit a record - high 167.3 per cent.
Outstanding
debt per
household in the United States continues to
hit all - time highs.
Although bankruptcy filings have been trending downward for years,
household debt is expected to
hit a new record in 2017.
According to the Institute of International Finance (IIF), China's
household debt - to - GDP ratio
hit a record high of 45 % + in the first quarter of this year.
But the level of
household debt continues to rise,
hitting 171.1 per cent of disposable income in the third quarter.
The Bank of Canada has pointed to the potential hazards linked to high
household debt — particularly if the country were
hit by a severe recession or a prolonged period of increasing unemployment.
Poloz also notes that those Canadians with high -
household debt have actually doubled since 2008, when the global economic crisis
hit.
Just last year, Canada's
household debt burden
hit record highs, and holiday spending was up another 8 percent.
According to Statistics Canada, the ratio of
household debt - to - disposable income
hit an all - time high of 148.1 % in the third quarter, an increase of 6.7 % over last year.
Canada's
household debt continues to
hit extreme levels, but for some people the damage may have already been dealt.
Earlier this year, the
household debt - to - income ratio
hit another record of 167.8 per cent.
The market has been
hit by a confluence of policies: Ontario's Fair Housing Policy, including a foreign buyers» tax aimed at cooling the market; a new mortgage stress test targeted at protecting Canadians from dangerously high
household debt levels; and the Bank of Canada's moves to increase interest rates.