Household debt in Canada can lead us into crisis On January 16, 2016, the Office of the Parliamentary Budget Officer (PBO) released its report titled: Household Indebtedness and Financial Vulnerability . A summary of the PBO s findings are: In the third quarter of 2015, total household debt in Canada reached 171 per cent of disposable income. In other words, for every $100 of disposable income, households had debt obligations of $171. This is the highest level recorded since 1990 and the highest level. The report also found that: Among G7 countries, Canada has experienced the largest increase in household debt relative to income since 2000. Households in Canada have become more indebted than any other G7 country over recent history. Analysis conducted at the Bank of Canada suggests that low interest rates, higher house prices and financial innovation have contributed to the increase in household indebtedness. A financially vulnerable household is one that is required to devote a s
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