{"id":37939,"date":"2018-09-18T18:15:59","date_gmt":"2018-09-18T23:15:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37939"},"modified":"2018-09-18T18:15:59","modified_gmt":"2018-09-18T23:15:59","slug":"debt-laden-canadians-struggling-amid-decade-high-monthly-payments","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37939","title":{"rendered":"Debt-Laden Canadians Struggling Amid Decade-High Monthly Payments"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-18\/debt-laden-canadians-struggling-amid-decade-high-monthly-payments\"><span class=\"field field--name-title field--type-string field--label-hidden\">Debt-Laden Canadians Struggling Amid Decade-High Monthly Payments<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1118\" data-gtm-vis-first-on-screen-2077925_22=\"1118\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div>Canadians are spending more of their monthly budget on servicing debt, according to\u00a0<em><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-09-14\/debt-burdens-are-eating-up-a-growing-share-of-canadian-incomes\">Bloomberg<\/a>,\u00a0<\/em>hitting highs not seen since late 2008.<\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/maple%20syrup.jpg?itok=-68NHkXE\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/maple%20syrup.jpg?itok=-68NHkXE\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/maple%20syrup.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/maple%20syrup.jpg?itok=-68NHkXE 1x\" alt=\"\" width=\"500\" height=\"281\" data-entity-type=\"file\" data-entity-uuid=\"d23c6dd8-7958-495f-a705-8843c30804cc\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<blockquote><p><em>The household debt service ratio &#8212; a measure of the share of income that goes toward paying interest and principal on mortgage, credit card and other types of debt &#8212; reached 14.2 percent in the second quarter, <strong>the highest level since the end of 2008<\/strong>. &#8211;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-09-14\/debt-burdens-are-eating-up-a-growing-share-of-canadian-incomes\">Bloomberg<\/a><\/em><\/p><\/blockquote>\n<p><em><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/debt%20svc.png?itok=Ce_sfGN7\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/debt%20svc.png?itok=Ce_sfGN7\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/debt%20svc.png\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/debt%20svc.png?itok=Ce_sfGN7 1x\" alt=\"\" width=\"500\" height=\"320\" data-entity-type=\"file\" data-entity-uuid=\"2abace45-c252-4444-97b8-caa6d2ce531d\" data-responsive-image-style=\"inline_images\" \/><\/a><\/em><\/p>\n<p>The spiking\u00a0debt-service ratio follows\u00a0<strong>four central bank interest rate hikes<\/strong>\u00a0over the past 14 months, while borrowing costs are expected to rise again in October.<\/p>\n<p>According to data released Friday by <a href=\"https:\/\/www150.statcan.gc.ca\/t1\/tbl1\/en\/tv.action?pid=1110006501\">Statistics Canada<\/a>, a larger percentage of Canadian income goes towards interest payments alone, at around 6.9% &#8211; the highest level in five years.<\/p>\n<blockquote><p>Elevated debt levels remain a vulnerability for the economy. <strong>Canadian households are the most leveraged in the Group of Seven<\/strong>, with total debt of about C$2.19 trillion ($1.68 trillion), or C$1.69 in debt for every C$1 of income. That jeopardizes the sector\u2019s future contribution to real gross domestic product growth.\u00a0<em>&#8211;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-09-14\/debt-burdens-are-eating-up-a-growing-share-of-canadian-incomes\">Bloomberg<\/a><\/em><\/p><\/blockquote>\n<p>Around 1.9% of Canadian growth were attributed to consumption spending last year, which is expected to fall to 1.2% by 2020 according to projections by the Bank of Canada.<\/p>\n<\/div>\n<div class=\"extras-section\">\n<div class=\"field field--name-field-tags field--type-entity-reference field--label-above\">\n<div class=\"field__items\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Debt-Laden Canadians Struggling Amid Decade-High Monthly Payments Canadians are spending more of their monthly budget on servicing debt, according to\u00a0Bloomberg,\u00a0hitting highs not seen since late 2008. The household debt service ratio &#8212; a measure of the share of income that goes toward paying interest and principal on mortgage, credit card and other types of debt [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,195,15377,4318],"class_list":["post-37939","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-debt","tag-debt-servicing","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37939"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37939\/revisions"}],"predecessor-version":[{"id":37940,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37939\/revisions\/37940"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}