Canadians are cutting back on their credit
Posted Nov 10, 2012 03:57:10 AM.
This article is more than 5 years old.
Bank of Canada governor Mark Carney has been ringing alarm bells about Canadians skyrocketing household debt and he could be smiling at the numbers of a new R.B.C study.
It finds that debt growth in the country has hit it’s lowest level since 2002.
R.B.C economist, David Onyett Jeffries tells 1310News that debt growth was 5.6 per cent in the third quarter.
“They’re still borrowing, it’s just that they’re borrowing more slowly I guess is the way of putting it. They’re borrowing in smaller volumes.”
Growth in consumer debt includes everything from credit cards to mortgages.
Onyett Jeffries tells 1310News, this continues a trend.
“Since the debt growth peaked in 2008, we’ve seen a steady and gradual downward trend which is being viewed as a very positive development for most policy makers.”
In Canada, the ratio of debt to disposable income is about 160 per cent.
