A Summary Of Debt Trends In Canada

One of the issues that often causes people to avoid seeking help from our team at 4 Pillars is the concern that they are the only ones facing debt problems. In fact, as a country, Canada has seen an upward trend in overall household debt throughout the years, with issues in 2020 from COVID-19 certain to have a negative impact on these levels.

In the first quarter of 2020, according to Statistics Canada, the average percentage of debt in Canadian households rose to 176.9%, up from 175.6 in the final quarter of 2019.

What this number means for people is that for every dollar of disposable income for a home, there is a corresponding $1.77 in debt. For those with lower incomes, the ratio tends to higher, while for those in high income households the rate is somewhat lower but still trending upwards.

Possible Positives

The good news for consumers is this has sparked some options in the financial market that can be of assistance in paying down debt. Our 4 Pillars team can provide information on these potential benefits for consumers to use.

One positive change is a drop in interest rates. This has also translated into a drop in debt service costs, which means the principal and interest on the debt is lower based on household disposable income. For individuals, paying off credit cards and other types of debt now has lower overall cost, reducing the total payment amount.

If you are interested in learning about options to help you to repay debt, call on the professionals at 4 Pillars. Get in touch with us today at 866-690-3328.