Statistics Canada says the level of household credit market debt 2016 rose to 166.9 per cent in Q3
TORONTO, ONTARIO, December 15, 2016 – Living the life of credit only may be a little too much for some Canadians to manage. New stats from Statistics Canada reveal the household credit market debt (consumer credit, and mortgage and non-mortgage loans) increased to 166.9 per cent of adjusted disposable income in Q3 2016 in comparison to 166.4 per cent in Q2 2016.
The new statistics reveal Canadians now owe $1.67 in credit market debt, for every dollar of disposable income. Overall the total household credit market debt Canadians owe is $2.004 trillion for Q3 2016; consumer credit is $590 billion whereas mortgage debt is $1.312 trillion for the third quarter.
“It is no surprise Canadian debt is on the rise. Many households are stretched thin and as a consequence they turn to debt to stay afloat,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
“When your household finances are put under a lot of stress, it’s important to take a step back and think of ways to adapt a frugal lifestyle to ease some of the financial strains. This may be easier said than done however in the long run, it will relieve a lot of financial stress in your life,” says Schwartz.
ConsolidatedCredit.ca understands many households in Canada are living paycheque to paycheque and it may be difficult to let go of your use of credit completely. In an effort to help consumers minimize their debt loads, Consolidated Credit Counseling Services of Canada offers the following tips:
Take a snapshot
A budget will give you a clear picture of your finances. You can also track your spending habits with various budgeting apps and identify areas to cutback and put more towards your debt.
Save your money
Emergencies can arise at any given time. Stay prepared by creating an emergency fund to avoid turning to debt in the event of an emergency.
Create goals for yourself
You can create a goal as small as saving an extra $20 a week to saving $10 per cent of your income, measure your progress on a monthly or weekly basis – the options are endless.
Don’t add to your debt
If you pay for everything with your credit card and you carry large balances of credit from month to month, now is a good time to consider reducing your credit card usage. Consider using your debit card or start using cash only for all of your purchases.
Less is more
The reality is if you are struggling to financially maintain your lifestyle, you should consider downsizing your life. You may experience some short term pain however you have to look at the bigger picture.
It seems simple, but it’s not easy
When your mountain of debt is causing you to lose sleep at night, this is when you should stop what you’re doing and get in touch with a trained credit counsellor. A counsellor will help you manage your debt and get your life back on track.
About Consolidated Credit Counseling Services of Canada, Inc.:
Consolidated Credit Counseling Services of Canada is a national non-profit credit counselling organization that teaches consumers about personal finance.
For more information or to request an interview with Jeffrey Schwartz, please contact:
Natasha Carr, Community and Public Relations Manager,
Consolidated Credit Counseling Services of Canada, Inc.,
T: 416-915-7283 ext.1041, C: 416-830-4720, F: 416-915-5200, E: [email protected]