Canadian debt up faster than disposable income

Toronto, December 18 (CINEWS): According to Statistics Canada, Canadians owed almost $1.64 for every dollar of disposable income they earned in the third quarter of 2015.
It is believed that the ratio climbed to 163.7 percent, a full percentage point since the previous quarter, because debt rose faster than incomes. Stats revealed that household debt rose 1.4 per cent in the quarter as compared to debt1disposable income which only climbed to 0.8 per cent.
All in all, Canadians owed $1.89 trillion at the end of the third quarter, up 1.4 per cent from the previous quarter. Within that, consumer credit debt was $572.3 billion, while mortgage debt stood at $1,234 billion.
While some economists quickly reassure us that the scenario is not so bleak, there is nothing to prevent debt from spiralling out of control. With few incomes rising and economy limping along, we’d be wise to put the reins on spending. Many studies indicate that much of this debt piles on during the holiday season. Let us give our near and dear ones the gift of time, teach them to be prudent and not start the New Year in the red.

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