Statistics Canada says Canadian household debt relative to income down in Q1

OTTAWA — Statistics Canada says the amount Canadians owe relative to their income in the first quarter edged lower compared with the fourth quarter of 2023 as growth in household disposable income outpaced the growth in debt.

The agency says household credit market debt as a proportion of household disposable income was 176.4 per cent in the first three months of the year on a seasonally adjusted basis.

The result compared with 178.0 per cent in the fourth quarter of 2023.

In other words, there was $1.76 in credit market debt for every dollar of household disposable income in the first quarter of 2024.

Meanwhile, the household debt service ratio, measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, was 14.91 per cent in the first quarter of 2024 compared with 14.98 per cent in the fourth quarter of 2023.

The move came as household disposable income rose 1.9 per cent, while debt payments increased 1.4 per cent.

This report by The Canadian Press was first published June 13, 2024.

The Canadian Press