Canadian household debt ratio increases

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Debt-to-debt ratio increase in Canadian households

L he gap between Canadians' debt and their income rose in the second quarter.

The amount Canadians owe relative to their income rose in the second quarter, as their level of ;debt has been growing faster than their income, Statistics Canada said on Monday.

Household credit market debt as a share of household disposable income rose to 181.7 %, on a seasonally adjusted basis in the second quarter, compared to 179.7% in the first quarter, said the agency st federal statistics.

In other words, there was about $1.82 of credit market debt for every dollar of household disposable income in the second quarter.

This increase occurred as household disposable income increased by 1.0%, while household credit market debt increased by 2.1%.< /p>

According to Statistics Canada, on a seasonally adjusted basis, households added $56.3 billion in debt in the second quarter, including $48.7 billion in mortgages.

< p class="e-p">The household debt service ratio, measured as total obligatory principal and interest payments on credit market debt as a proportion of household disposable income, was 13.63% in the second quarter, compared to 13.34% in the first quarter.

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