{"id":10571,"date":"2021-04-07T19:00:18","date_gmt":"2021-04-07T23:00:18","guid":{"rendered":"http:\/\/www.irasmithinc.com\/blog\/?p=10571"},"modified":"2021-04-06T15:07:52","modified_gmt":"2021-04-06T19:07:52","slug":"canada-household-debt","status":"publish","type":"post","link":"https:\/\/irasmithinc.com\/blog\/canada-household-debt\/","title":{"rendered":"CANADA HOUSEHOLD DEBT:  HOW COVID-19 AFFECTED HOUSEHOLD DEBT AND IS THERE A LOOMING CORONAVIRUS DEBT CRISIS?"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Ira Smith Trustee &amp; Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/GY1a-5lExCU\" width=\"962\" height=\"541\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><em>canada household debt<\/em><\/p>\n<h2 id='canada-household-debt-pre-pandemic-debt-pressures'  id=\"boomdevs_1\"><b><i>Canada household debt:\u00a0 Pre-pandemic debt pressures<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Pre-pandemic, <\/span><b><i>Canada household debt<\/i><\/b><span style=\"font-weight: 400;\"> was continually increasing. <\/span><span style=\"font-weight: 400;\">The number of homes carrying debt has increased significantly over the last decade. In 2012, <\/span><i><span style=\"font-weight: 400;\">Statistics Canada<\/span><\/i><span style=\"font-weight: 400;\"> reported that for the <\/span><i><span style=\"font-weight: 400;\">average household<\/span><\/i><span style=\"font-weight: 400;\">, <\/span><i><span style=\"font-weight: 400;\">Canadian households&#8217;<\/span><\/i> <i><span style=\"font-weight: 400;\">debt-to-income<\/span><\/i><span style=\"font-weight: 400;\"> (DTI) ratio was 150%.\u00a0 That means that debt was rising at a rate of $1.50 for every dollar of income. This was up from $1.10 or 110% the year before.\u00a0 In the first quarter of 2020, <\/span><span style=\"font-weight: 400;\">the<\/span><a href=\"https:\/\/www.bnnbloomberg.ca\/household-debt-ratio-rises-to-170-7-per-cent-statcan-says-1.1535105\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">DTI ratio hit 175.4%<\/span><\/a><span style=\"font-weight: 400;\">. The ratio had been stuck at that level since about 2016.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This increase in debt can have a negative effect on a household\u2019s bottom line \u2014 and the larger the debt, the greater the negative effect.\u00a0 In this Brandon&#8217;s Blog, I discuss what has happened to <\/span><i><span style=\"font-weight: 400;\">Canada household debt<\/span><\/i><span style=\"font-weight: 400;\"> during the COVID-19 pandemic.<\/span><\/p>\n<h2 id='how-covid-19-affected-household-debt-in-2020-canada-household-debt-well-supported-by-a-temporary-income-surge'  id=\"boomdevs_2\"><b><i>How COVID-19 Affected Household Debt in 2020:\u00a0 Canada household debt well supported by a temporary income surge<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you consider the federal and provincial financial assistance given to Canadians primarily through <\/span><a href=\"https:\/\/www.canada.ca\/en\/department-finance\/economic-response-plan.html\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Canada&#8217;s COVID-19 Economic Response Plan<\/span><\/i><\/a><span style=\"font-weight: 400;\"> as an income surge or not, findings released by Canada Mortgage and Housing Corporation (CMHC) in November 2020 show that the government assistance did help Canadians cope with <\/span><i><span style=\"font-weight: 400;\">Canada household debt.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><i><span style=\"font-weight: 400;\">key findings in Canada<\/span><\/i><span style=\"font-weight: 400;\"> in the CMHC report were:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Q2 2020 <\/span><i><span style=\"font-weight: 400;\">Canada household debt<\/span><\/i><span style=\"font-weight: 400;\"> ratio is 17% down from the Q1 ratio at 158%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The DTI ratio for home mortgage debt was also down, falling from 115% to 105%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These declines were a straight outcome of a boost in household disposable income.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The degree of outstanding <\/span><i><span style=\"font-weight: 400;\">Canada household debt<\/span><\/i><span style=\"font-weight: 400;\"> had not changed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">On average, Canadian household disposable income grew by almost 11% between the Q1 and Q2 of 2020 and by 15% year over year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government&#8217;s temporary transfer of money to Canadian families had the effect of decreasing the <\/span><i><span style=\"font-weight: 400;\">Canada household DTI<\/span><\/i><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> ratio to a ratio not seen since 2010.<\/span><\/span>\n<p><figure id=\"attachment_10574\" aria-describedby=\"caption-attachment-10574\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/g.page\/torontobankruptcy?share\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-10574\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-300x200.jpg\" alt=\"canada household debt\" width=\"300\" height=\"200\" data-wp-pid=\"10574\" data-pin-nopin=\"nopin\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-300x200.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1024x682.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-768x512.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1200x800.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-150x100.jpg 150w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-10574\" class=\"wp-caption-text\"><em>canada household debt<\/em><\/figcaption><\/figure><\/li>\n<\/ul>\n<h2 id='covid-19-the-second-wave-brought-uncertainty-on-household-debt'  id=\"boomdevs_3\"><b><i>COVID-19: The second wave brought uncertainty on household debt<\/i><\/b><\/h2>\n<p><i><span style=\"font-weight: 400;\">How Has COVID-19 Affected Canada Household Debt?<\/span><\/i><span style=\"font-weight: 400;\">\u00a0 <\/span><span style=\"font-weight: 400;\">Around the time of the second wave, the COVID-19 pandemic had actually changed the family financial picture. The DTI ratio is a crucial indication of financial obligations as a vulnerability for primarily the financial real estate industries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><i><span style=\"font-weight: 400;\">Canada household debt<\/span><\/i><span style=\"font-weight: 400;\">-to-income ratio decreased in all significant Canadian cities in the second quarter of 2021. Under regular scenarios, such a decline would certainly indicate a general strengthening in families&#8217; capacity to pay off financial debt. Federal government subsidies effectively supported the household lost income. This more than likely helped Canadians with lowering their non-mortgage debt throughout those months. Nonetheless, the mortgage part of Canada household debt has increased in the majority of metropolitan areas while employment has contracted.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, <\/span><i><span style=\"font-weight: 400;\">mortgage deferrals<\/span><\/i><span style=\"font-weight: 400;\"> on <\/span><i><span style=\"font-weight: 400;\">mortgage payments<\/span><\/i><span style=\"font-weight: 400;\"> offered by Canadian <\/span><i><span style=\"font-weight: 400;\">financial institutions<\/span><\/i><span style=\"font-weight: 400;\"> stopped.\u00a0 This of course leads to worries about the ability of Canadians to stay current on their <\/span><i><span style=\"font-weight: 400;\">mortgage payments<\/span><\/i><span style=\"font-weight: 400;\">, even with the current extremely low-interest rates. Other government assistance programs have already ended or are coming to an end. The end of the <\/span><i><span style=\"font-weight: 400;\">government support programs<\/span><\/i><span style=\"font-weight: 400;\"> leading to the temporary boosting of household income now brings uncertainty as to how Canadians will be able to manage to carry and pay down their <\/span><i><span style=\"font-weight: 400;\">household debt levels<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id='canada-household-debt-higher-income-increases-drive-dti-ratios-down'  id=\"boomdevs_4\"><b><i>Canada household debt:\u00a0 Higher-income increases drive DTI ratios down<\/i><\/b><\/h2>\n<p><a href=\"https:\/\/www.bnnbloomberg.ca\/household-debt-ratio-rises-to-170-7-per-cent-statcan-says-1.1535105\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Statistics Canada<\/span><\/i><\/a><span style=\"font-weight: 400;\"> also came out with an interesting report about the <\/span><i><span style=\"font-weight: 400;\">economic impacts<\/span><\/i><span style=\"font-weight: 400;\"> of h<\/span><i><span style=\"font-weight: 400;\">ow COVID-19 affected household debt in 2020<\/span><\/i><span style=\"font-weight: 400;\">.\u00a0 The key findings of the <\/span><i><span style=\"font-weight: 400;\">Statistics Canada<\/span><\/i><span style=\"font-weight: 400;\"> report are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The gap between the lowest and highest income groups declined in 2020.\u00a0 As you might expect, the reason was that lower-income families received a greater share of government COVID-19 funds than <\/span><i><span style=\"font-weight: 400;\">higher-income households<\/span><\/i><span style=\"font-weight: 400;\">.\u00a0 Therefore, lower-income households saw more <\/span><i><span style=\"font-weight: 400;\">growth in household<\/span><\/i><span style=\"font-weight: 400;\"> income than high-income earners, so, the gap closed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There was a more powerful rebound in disposable income for <\/span><i><span style=\"font-weight: 400;\">lower-income households<\/span><\/i><span style=\"font-weight: 400;\"> as well as younger households.\u00a0 Again, government coronavirus pandemic-related funds transfers are the reason why.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lowest-income and youngest families experience the biggest decline in wages and salaries.\u00a0 As <\/span><i><span style=\"font-weight: 400;\">mobility restrictions<\/span><\/i><span style=\"font-weight: 400;\">, shutdowns and lockdowns took place across Canada, travel, food and beverage and the hospitality industries were hard hit because of closings for an <\/span><i><span style=\"font-weight: 400;\">extended period<\/span><\/i><span style=\"font-weight: 400;\">.\u00a0 These industries provided employment for many lower-income people.\u00a0 Layoffs resulted in declines in wages and salaries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The dollars of COVID-19 assistance doled out by the federal government surpassed the losses in employment and self-employment incomes suffered.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">COVID-19 support procedures have the biggest impact on lower-income and more youthful households.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Families were able to reduce <\/span><i><span style=\"font-weight: 400;\">monthly expenses<\/span><\/i><span style=\"font-weight: 400;\"> to the point where it was less than their monthly income from all sources to boost their savings and <\/span><i><span style=\"font-weight: 400;\">cash balances<\/span><\/i><span style=\"font-weight: 400;\"> on hand in 2020.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lowest-income and youngest families saw the largest wealth gains.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low lending rates facilitated home buying for lower-income and younger Canadians.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lower-income families restricted their <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/canadian-consumer-debt\/\"><i><span style=\"font-weight: 400;\">consumer debt<\/span><\/i><\/a><span style=\"font-weight: 400;\"> balances on credit cards and other non-mortgage debt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Younger homes restricted <\/span><i><span style=\"font-weight: 400;\">consumer credit<\/span><\/i><span style=\"font-weight: 400;\"> (non-mortgage) borrowing in spite of higher <\/span><i><span style=\"font-weight: 400;\">consumer spending<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The biggest changes in DTI ratios occurred in lower-income and also younger families as opposed to <\/span><i><span style=\"font-weight: 400;\">higher-income households<\/span><\/i><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">.<\/span><\/span>\n<p><figure id=\"attachment_10574\" aria-describedby=\"caption-attachment-10574\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/bit.ly\/3rct600\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-10574\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-300x200.jpg\" alt=\"canada household debt\" width=\"300\" height=\"200\" data-wp-pid=\"10574\" data-pin-nopin=\"nopin\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-300x200.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1024x682.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-768x512.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1200x800.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-150x100.jpg 150w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-10574\" class=\"wp-caption-text\"><em>canada <a href=\"http:\/\/www.irasmithinc.com\/blog\/canadian-household-debt-news-canadians-addicted-borrowing\/\">household debt<\/a><\/em><\/figcaption><\/figure><\/li>\n<\/ul>\n<h2 id='canada-household-debt-how-will-covid-19-affect-financial-assets-delinquency-and-bankruptcy'  id=\"boomdevs_5\"><b><i>Canada household debt:\u00a0 How will COVID-19 affect financial assets, delinquency and bankruptcy?<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Canada Emergency Response Benefit (CERB) supplied financial support to Canadians who experienced negative financial impact by the COVID-19 pandemic. Eligible Canadians obtained $2,000 for a 4-week period (the same as $500 a week), between March 15 and September 26, 2020. <\/span><span style=\"font-weight: 400;\">Roughly $82 billion was paid to about 8.9 million Canadians through the CERB program which ended in September 2020.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Canada Recover Benefit (CRB) sustains Canadians that have actually not returned to work as a result of COVID-19 or whose earnings have actually been reduced at the very least by 50%, and who are not eligible for Employment Insurance (EI). Eligible Canadians should be searching for work and accepting a job where it is reasonable to do so. The CRB gives $500 a week for up to 38 weeks. It is available only for 1 year. You make an application for the CRB for 2 weeks a time through your online CRA MyAccount. You have to wait until after you&#8217;ve missed out on 2 weeks of work to apply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So the CERB is over. The CRB will get kicked to the CRB by this Fall. The Canada Emergency Wage Subsidy for support businesses continuing to employ people is supposed to end this June. Mortgage <\/span><i><span style=\"font-weight: 400;\">payment deferrals<\/span><\/i><span style=\"font-weight: 400;\"> are over. Although during the first wave courts were closed so lawsuits were not advancing and at the same time collection agencies were not hounding people. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The courts have been open and litigation continuing for some time now. Over the last few weeks, people calling in to inquire about consumer proposals and personal bankruptcy have been saying they are getting calls from collection agencies looking for money, including, <\/span><i><span style=\"font-weight: 400;\">credit card debt payments<\/span><\/i><span style=\"font-weight: 400;\">. So pretty soon we should be back to business as usual as far as debt collection is concerned.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To date, as indicated above, COVID-19 has allowed Canadians in general to increase their financial assets and their <\/span><i><span style=\"font-weight: 400;\">rise in household<\/span><\/i><span style=\"font-weight: 400;\"> net worth. As already described, for those lower-income families, the <\/span><i><span style=\"font-weight: 400;\">government support measures<\/span><\/i><span style=\"font-weight: 400;\"> have actually had an <\/span><i><span style=\"font-weight: 400;\">increase in household income<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Delinquencies in <em>Canada household debt<\/em> have been ignored to a large extent in 2020 and bankruptcy filings were the lowest on record in 2020 in two decades. I expect that to change, as nobody is currently addressing any form of debt hangover. That is debts that people had pre-pandemic where no principal has yet been paid down and lenders have been understanding and therefore not pressing for collection. As collection calls increase, I expect that personal insolvency filings will also.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I expect that there will also be an increase in corporate insolvency filings. So far in Canada, most of the filings have been large retailers, certain cannabis companies and Laurentian University seeking bankruptcy protection in order to restructure under the <\/span><i><span style=\"font-weight: 400;\">Companies&#8217; Creditors Arrangement Act<\/span><\/i><span style=\"font-weight: 400;\"> (CCAA). As the economy gets better, companies will need to restart, hire more staff and generally gear up for an increase in business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies will need capital to do so. Unless a company is sitting with a large cash balance, which for the majority is unlikely, they will need to tap into available <\/span><i><span style=\"font-weight: 400;\">lines of credit<\/span><\/i><span style=\"font-weight: 400;\"> or do fresh borrowing. Lenders who have been understanding to date, may not wish to increase their exposure to certain companies or industries. If companies do not have the cash to operate, they will fail.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">How will COVID-19 affect financial assets, delinquency and bankruptcy?\u00a0 <\/span><\/i><span style=\"font-weight: 400;\">I will now provide you with some thoughts to consider.<\/span><\/p>\n<h2 id='canada-household-debt-predictions-and-financial-challenges-for-2021'  id=\"boomdevs_6\"><b><i>Canada household debt:\u00a0 Predictions and financial challenges for 2021<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Canadians will be facing a great financial challenge as the economy rebounds from the <\/span><i><span style=\"font-weight: 400;\">economic impacts<\/span><\/i><span style=\"font-weight: 400;\"> of the coronavirus. <\/span><span style=\"font-weight: 400;\">Canada&#8217;s economy pretty well made a sudden stop due to the <\/span><i><span style=\"font-weight: 400;\">COVID\u201119 pandemic crisis<\/span><\/i><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This has actually caused extensive income losses, producing a tough scenario for many Canadian families.\u00a0 This is especially true for those that are highly indebted. From a financial stability point of view, a key worry is whether homes can stay up to date with their financial obligation payments.\u00a0 Highly indebted Canadians may very well end up in a <\/span><i><span style=\"font-weight: 400;\">financial crisis<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The COVID\u201119 pandemic has a worldwide reach, and its aftermath is a lot more uncertain than how we recover from a normal recession. Economic activity will most certainly rebound as mandated lockdowns are gradually relieved. However, this will likely be a slow process, implying some of the macro-financial results of the pandemic might linger.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><i><span style=\"font-weight: 400;\">Bank of Canada<\/span><\/i><span style=\"font-weight: 400;\"> is worried about the 2021 financial challenges for all Canadians. To what degree can homes weather the storm? Canada&#8217;s <\/span><i><span style=\"font-weight: 400;\">central bank<\/span><\/i><span style=\"font-weight: 400;\"> says that this eventually depends on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the financial wellness of households last February 2020;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the efficiency of <\/span><i><span style=\"font-weight: 400;\">Canadian government support measures<\/span><\/i><span style=\"font-weight: 400;\"> and policy activities targeted at the recovery; and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the rate at which the labour market recuperates.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Bank of Canada will be looking at many <a href=\"http:\/\/www.irasmithinc.com\/blog\/consumer-debt-canada-2\/\"><em>Canada household debt<\/em><\/a> factors as the economy recovers.\u00a0 Specifically concerning are the more financially vulnerable households.\u00a0 Things that will give the <\/span><a href=\"https:\/\/www.bnnbloomberg.ca\/bank-of-canada-warns-of-excess-business-household-debt-from-covid-19-1.1436354\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Bank of Canada<\/span><\/i><\/a><span style=\"font-weight: 400;\"> concern about <\/span><i><span style=\"font-weight: 400;\">household liabilities<\/span><\/i><span style=\"font-weight: 400;\"> are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mortgagors (the homeowners) with not many financial guardrails.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home equity credit lines can supply a financial reserve however at the expense of increased borrowing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Will government fiscal policy aid in supporting Canadians until household income can get back to or exceed pre-pandemic levels?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unemployment rates may not be a fully accurate indicator of household revenue losses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Only time will tell how 2021 unfolds for Canadians and the economy.<\/span><\/p>\n<figure id=\"attachment_10574\" aria-describedby=\"caption-attachment-10574\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/bit.ly\/3rct600\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-10574\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-300x200.jpg\" alt=\"canada household debt\" width=\"300\" height=\"200\" data-wp-pid=\"10574\" data-pin-nopin=\"nopin\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-300x200.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1024x682.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-768x512.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1200x800.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-150x100.jpg 150w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-10574\" class=\"wp-caption-text\"><em>canada household debt<\/em><\/figcaption><\/figure>\n<h2 id='canada-household-debt-summary'  id=\"boomdevs_7\"><b><i>Canada household debt summary<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">I hope you enjoyed this <\/span><i><span style=\"font-weight: 400;\">Canada household debt<\/span><\/i><span style=\"font-weight: 400;\"> Brandon Blog post. Are you worried because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option? Call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The<\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\"> Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\"> utilizes new modern-day ways to get you out of your debt difficulties while<\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/bankruptcy-alternative\/\"> <i><span style=\"font-weight: 400;\">avoiding bankruptcy<\/span><\/i><\/a><span style=\"font-weight: 400;\">. We can get you the relief you need and so deserve.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We understand that people and businesses facing financial issues need a realistic lifeline. There is no \u201cone solution fits all\u201d method with the<\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\"> Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\">. Not everyone has to <\/span><i><span style=\"font-weight: 400;\">file bankruptcy in Canada<\/span><\/i><span style=\"font-weight: 400;\">. The majority of our clients never do. We help many people and companies stay clear of <\/span><i><span style=\"font-weight: 400;\">bankruptcy<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why we can establish a new restructuring procedure for <\/span><i><span style=\"font-weight: 400;\">paying down debt<\/span><\/i><span style=\"font-weight: 400;\"> that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need,<\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\"> contact the Ira Smith Trustee &amp; Receiver Inc. group today<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Call us now for a no-cost consultation<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, <\/span><i><span style=\"font-weight: 400;\">Starting Over, Starting Now<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Ira Smith Trustee &amp; Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.<\/span><\/p>\n<figure id=\"attachment_10574\" aria-describedby=\"caption-attachment-10574\" style=\"width: 580px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/g.page\/torontobankruptcy?share\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-10574\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1024x682.jpg\" alt=\"canada household debt\" width=\"580\" height=\"386\" data-wp-pid=\"10574\" data-pin-nopin=\"nopin\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1024x682.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-300x200.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-768x512.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-1200x800.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt-150x100.jpg 150w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2021\/04\/canada-household-debt.jpg 1280w\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" \/><\/a><figcaption id=\"caption-attachment-10574\" class=\"wp-caption-text\"><em>canada household debt<\/em><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>We hope that you and your family are safe, healthy and secure during this coronavirus pandemic. Ira Smith Trustee &amp; Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. canada household debt Canada household debt:\u00a0 Pre-pandemic debt pressures Pre-pandemic, Canada household debt [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[4912,1051,4899,4903,4603,4901,4911,4910,4906,4907,4902,4905,4909,863,4565,4900,777,4904],"class_list":["post-10571","post","type-post","status-publish","format-standard","hentry","category-brandon-blog-post","tag-affected-household-debt-in-2020","tag-bank-of-canada","tag-canada-household-debt","tag-canada-household-debt-well-supported-by-a-temporary-income-surge","tag-canadas-covid-19-economic-response-plan","tag-canadian-households-debt-to-income","tag-credit-card-debt-payments","tag-delinquency-and-bankruptcy","tag-government-support-programs","tag-higher-income-increases-drive-dti-ratios-down","tag-how-covid-19-affected-household-debt-in-2020","tag-how-has-covid-19-affected-canada-household-debt","tag-how-will-covid-19-affect-financial-assets","tag-ira-smith-trustee","tag-mortgage-deferrals","tag-pre-pandemic-debt-pressures","tag-statistics-canada","tag-the-second-wave-brought-uncertainty-on-household-debt"],"_links":{"self":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/10571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/comments?post=10571"}],"version-history":[{"count":6,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/10571\/revisions"}],"predecessor-version":[{"id":10582,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/10571\/revisions\/10582"}],"wp:attachment":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/media?parent=10571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/categories?post=10571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/tags?post=10571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}