REPORT: CANADIANS REPAYING DEBT VS SAVING FOR 1st TIME IN DECADE
Sep 10, 2019
By Bob Komsic
Instead of investing, Canadians are paying down debt for the first time since the 2008 financial crisis.
The Household Balance Sheet Report by Investor Economics says the shift follows a period in which debt-to-income ratios have been on the rise.
Currently, those levels are more than 20% higher than in late 2007.
In cities such as Toronto, debt-to-income ratios exceeded 200% in 2016, meaning a household with $50,000 in after-tax income had more than twice that in debt.
”This has translated into a sharper focus by Canadian households in diverting discretionary financial assets toward lowering personal debt,” according to the report, which points out the change in attitude could see a decline in the amount of money going into investment products, specifically toward retirement savings.