The ratio of Canadian household debt to disposable income fell in the fourth quarter as the rise in disposable income outpaced that of debt, Statistics Canada said Monday.
Household credit market debt as a share of disposable income narrowed to 180.5% in the fourth quarter, on a seasonally adjusted basis, from 184%, according to the federal agency. .3% in the third quarter.
This reading means that for every dollar of household disposable income in the fourth quarter, there was $1.81 of debt in the credit market.
Household disposable income climbed 3.0% in the last three months of 2022, while credit market debt rose 0.8%.
The household debt-service ratio, which expresses total obligatory principal and interest payments on debt in the credit market as a proportion of disposable income, stood at 14.33% in the fourth quarter. , up from 14.24% in the previous quarter.
Statistics Canada’s most recent national balance sheet and financial flow accounts showed interest payments rose 14.1% in the fourth quarter, compared to the previous quarter. Compared to the same period a year earlier, these payments increased by 45%, which represented record growth.
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