Just how much do Canadians owe?

$1.1 trillion in mortgage debt and that’s just barely scratching the surface.

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After dipping for two straight quarters, the national household debt to income ratio jumped to a record 163.4%, Statistics Canada said Friday. That means, for every $1 we’re earning, we owe more than $1.63. Not exactly financial independence. So where’s all this debt coming from? Our homes, mostly. Cumulatively, we owe $1.1 trillion in mortgage payments and $500 billion to various  lenders, largely banks and credit card companies. It’s this consumer debt that’s really taking off that’s worrisome. Growth credit market debt accelerated  from 0.5% to 1.6% during the quarter, StatsCan said. You can be sure much of that is not adding to household net worth (now standing at $205,900 per capita). Visit the Debt section of our newly redesigned website for tips on how to get back on track.

2 comments on “Just how much do Canadians owe?

  1. I have no sympathy for those who bury themselves in debt. They are doing it to themselves, plain and simple. They are making conscious decisions to spend more than they are bringing in so they shouldn’t be blaming anyone but themselves.

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    • In todays world you must take on huge Debt especially in the form of Mortgages or a home would be an impossible dream due to the huge initial outlay of cash! I do think we tend to take on a large amount of CC debt that is unnecessary though and sometimes that leads to default and bankruptcy. Ruining your credit leads to many very stressful times and the cause of very many marriage breakups. Money is said to be the root of all evil and I firmly believe that chasing the almost attainable life style we are expected to maintain in todays world leads to some of the highest suicide rates in history. We have to revert to living within our means again but that is so hard when we see our neighbours with all of lifes toys while those of us who live frugally are made fun of. We will have the last laugh however as we retire in comfort while the neighbor who had it all wallows in debt ’till his dying days.

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