A report from Statistics Canada says that the ratio of Canadian household debt to income narrowed in the third quarter.
The agency says household credit market debt as a proportion of household disposable income in the third quarter fell to 181.6 per cent, on a seasonally adjusted basis, down from 181.9 per cent in the second quarter.
In other words, it says Canadians owed $1.82 in credit market debt for every dollar of household disposable income in the third quarter.
Meanwhile, the household debt service ratio — which measures the total amount of debt payments (including interest) against total disposable income — inched up, indicating that debt payments grew faster than income.
Stephanie Moyst, a single mother in Bareneed, N.L., runs a small business and works as an event planner, which brings in extra income in addition to her daytime job in the insurance sector.
Canadians are paying a higher proportion of their income toward debt than ever before. From second — even third — jobs to major lifestyle changes, Canadians are doing whatever they can to stay afloat.
She said that without an annual raise to match the rising cost of living, “we’re all just kind of flatlining with our salaries right now.”
“It’s a struggle and it’s been a struggle for me for 20 years as a single parent,” she added.
The report also noted several trends related to mortgage payments.
Since the Bank of Canada began its series of interest rate hikes in early 2022, the amount of total mortgage interest payments increased 89.6 per cent.
But there was a decline in the amount of payments that Canadians made on their mortgages, with principal payments down by 16.8 per cent.
