Canadian household debt ratio hits high Toronto Star reports: Introduction
In a recent blog we spoke about what Canadians feared the most financially. This week we’re going to discuss the number one financial priority for Canadians in 2018. We explain the issues because of the Canadian household debt ratio hits high Toronto Star reports, specifically in a December 14, 2017 article.
Canadian household debt ratio hits high Toronto Star reports: What Statistics Canada reported
Just when we think that Canadian household debt levels have gone as high as they possibly can, we reached yet another new high in the third quarter of 2017. According to Statistics Canada:
- The ratio of household credit-market debt to disposable income (the key gauge for measuring Canadians’ debt loads) rose to 171.1% in the third quarter, up from 170.1% in the second quarter
- Total household credit-market debt (mortgages, consumer credit such as credit cards and lines of credit and non-mortgage loans) increased 1.4% in the third quarter to $2.11-trillion, which is also a record
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Canadian household debt ratio hits high Toronto Star reports: What the CIBC opinion poll reports as Canadians’ financial priorities for 2018
CIBC did their annual opinion poll in December asking Canadians what their priorities were for 2018:
- 25% say that paying down debt is their top financial priority. This is the eighth straight year that paying down debt has landed in the number 1 position
- 15% say that they’re focused on keeping up with bills
- 13% say their top priority is growing wealth
- 7% say that saving for retirement is most important to them
- 8% want to save for a vacation
- 6% say a house or a renovation is their top financial goal
- 4% want to buy a vehicle or make another large purchase
- 4% want build up an emergency fund
Canadian household debt ratio hits high Toronto Star reports: What Canadians have said and what they really have done
Although when surveyed Canadians have said for the last eight years they are focused on paying down debt, only 16% in this year’s poll said that they were able to meet their goal. Knowing that you have to pay down debt and actually doing it are two very different things. In addition to not paying down debt, 26% of respondents said they took on new debt this year to pay the bills and to cover unexpected expenses.
Canadian household debt ratio hits high Toronto Star reports: We can help you keep your 2018 financial resolutions
Setting your priorities or making resolutions without a solid financial plan to back it up is going to keep you in debt. Instead of listing paying down debt as your top priority again next year, contact a trustee for professional help. We can help you solve your financial problems with immediate action and the right plan. With just one phone call to Ira Smith Trustee & Receiver Inc. you can take the first step to paying down debt and having financial peace of mind. Give us a call today and you can be Starting Over, Starting Now.