Real Estate

BMO reports that average household debt reaches $92,699 in Canada

by Charlie Smith on July 10th, 2015 at 9:14 AM
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      A significant increase in Canadian interest rates would create stress for millions of Canadians.

      A new BMO report says that Canadian households carry an average debt of $92,699. And they're paying $1,165 in debt-service costs each month.

      With interest rates near historic lows, stress levels in connection with household debt have fallen significantly—from 54 percent to 46 percent—over the past year.

      However if interest rates were to rise two percentage points, 64 percent would feel stressed, according to BMO. And a quarter would be "very stressed".

      The Bank of Canada's overnight rate is 0.75 percent and the bank rate is one percent. The next interest-rate announcement by the Bank of Canada is scheduled on Wednesday (July 15).

      Comments

      3 Comments

      Mr. Money

      Jul 10, 2015 at 4:57pm

      $92,699--does that include mortgage incurred debt?

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      Empire of DEbt! The parasites own the economy.

      Jul 11, 2015 at 12:11pm

      The banks, the insurers, the privatized public services, the government sanctioned monopolies (Shaw Telus), the credit card companies: I'm sure you can add more, these are the parasites that produce nothing but suck the money from us. They keep the economy down. For me the figure of over $1000 per month in debt interest payments is the most shocking. HOw do we survive? (By taking out more debt, of course). This is why the gov't won't raise interest rates, it they did the economy would crumble.

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