10 Debt Statistics That You Should Know About

10 Debt Statistics That You Should Know About

At the end of 2017, Canadians have accumulated a total of $2.08 trillion in household debt.

And based on preliminary numbers in 2018, our debt levels aren’t going down any time soon. In fact, the Parliamentary Budget Officer has predicted that the debt to income ratio will reach $1.80 by the end of 2018. This means that Canadians are going to owe a lot more and with a lot less flexibility for paying it down. Here are 10 debt statistics that you need to be aware of from 2017:

  1. Household debt reached $2.08 trillion, up 5% from one year ago.
  2. The debt-to-income ratio reached a record high 171.1%, meaning Canadians now owe $1.71 for every dollar they earn.
  3. There was a 4.4% decrease in insolvency. It’s the 8th year of year-over-year declines in consumer bankruptcies and proposals.
  4. 37% of Canadians feel overwhelmed by their debt, according to a survey by the Canadians Payroll Association.
  5. 56% of all new-vehicle loans are for 84 months or longer.
  6. The percentage of insolvencies filed by homeowners bottomed out at 6% in August 2017, according to the Hoyes Michalos Homeowner’s Bankruptcy Index.
  7. According to a TD survey, 27% of Canadians are unable to save any portion of their monthly income.
  8. 49% of Ontarians are living paycheque to paycheque, according to a Canadian Payroll Association September 2017 survey.
  9. 65.5% of household debt is mortgage debt.
  10. The Bank of Canada expects 47% of real estate mortgages to renew in 2018.

When you’re considering how to overcome serious debt problems in Canada, the best way is to tackle them sooner than later. Waiting and hoping that things will get better means that you will probably end up with fewer options available to you in the future.

If you’re looking for a credit counsellor in Toronto, get a quick assessment with us today or call us at 416.900.2324. We will help you develop a plan, reduce your interest costs and get out of debt over time.