Statistics Canada announced this month that per capita household debt increased to $46,700 for the quarter ending December 2011. This represents an increase in household debt of 4.94% versus a year earlier ($44,500). Although (due to household income growth) the debt-to-income ratio for the fourth quarter of 2011 fell to 152.9 versus 154.2 the quarter previous what are the majority of Canadians most likely to shed first; income or debt? I guess it depends if you are an optimist, pessimist or realist. Nonetheless, I don’t like the 1:2 odds of where this is leading us.
As a collection agency with offices in Edmonton, Calgary and the GTA we are watching with keen interest the unfolding of events with respect to these phenomenon and their impact (or lack thereof) on Canadian credit markets.