Canadians racking up less debt
Posted Jan 26, 2011 8:37 pm.
This article is more than 5 years old.
For over a year, the Bank of Canada and the federal government have been warning Canadians about their debt exposure.
Fear that if people don’t get their financial house in order, they could lose their homes when interest rates rise.
The debt-to-income ratio in Canada rose to a record high of 146 per cent in the third quarter.
New figures from the country’s fifth largest bank , seem to indicate, Canadians are borrowing less.
The Deputy Chief economist at CIBC tells 660News mortgage debt is growing at a slower rate and people are drawing less from their lines of credit.
Benjamin Tal also says people are not using their credit cards as much to make purchases.
Tal believes most people should have no trouble paying their bills when interest rates do start to climb.
He says the numbers indicate that the growth of household credit in Canada is now at it’s lowest level in almost a decade.
