Canadian Personal Finance Blog

Same news as last week folks, Canadian households Net value has gone up, but our debt load has increased as well.

This increase in household net worth was accompanied by a proportionally larger increase in household debt leading to a rise in household debt to net worth ratio. Households had 18 cents of debt for every dollar of net worth at the end of the third quarter. Debt service charges remained relatively stable at about 8% of personal disposable income.

The one thing to worry about is if the U.S. gets into an inflation fighting mode and starts raising their interest rates, Canada will do the same, and then for both the Government and households, servicing this debt we are incurring is going to get much more expensive! Stop building up debt, start getting rid of it folks. –C8j