Canadians slid further into debt in first quarter; credit outpaces income growth

Statistics Canada says Canadian households slid deeper into debt in the first quarter as the use of credit outpaced income growth.

The ratio of household debt to disposable income rose to 149.47 per cent from 147.64 a year earlier.

That means Canadians owe $1.49 for every after-tax dollar they earn.

Credit market debt grew by 1.3 per cent in the quarter, while personal disposable income grew by 0.7 per cent.

Mortgage debt grew, as Canadians continued to take advantage of historically low interest rates.

However, the increase in consumer credit debt slowed along with lower household spending.

Steven Brouwer