Statistics Canada says household debt-to-income ratio lower in Q3, service costs up

The amount Canadians owe relative to their income edged lower in the third quarter, but the cost of servicing that debt relative to income climbed, Statistics Canada said on Wednesday.

The agency said 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 was 15.22 per cent in the third quarter, up from 15.08 per cent in the second quarter, as debt payments grew faster than disposable income.