According to the latest figures from Statistics Canada, the disposable income of most Canadians is increasing slightly in comparison to what they owe to creditors, a situation that favours debt relief options such as debt settlement. The statistics which came out in mid March 2012 showed that Canadians’ disposable income demonstrated a slight improvement towards the end of 2011, signaling a good time for Canadians because this means their debt burden could as well be on a downward trend.
Debt-to-income ratio dropped from 151.9 per cent in the third quarter to 150.6 per cent through the fourth quarter of 2011. This was influenced by rising personal incomes which shot up much faster in comparison to consumer debt.
The country’s net worth also improved in the fourth quarter, going up by 0.8 per cent to hit $6.6 trillion. The net worth is calculated by taking all the resident’s assets less what is owed to foreigners. The increase in Canada’s net worth is largely attributed to a $60-billion rise in the value of non-financial assets which include real estate.
Per capita for the same year improved from $189,700 per Canadian in the third quarter to $190,900 in the fourth quarter. Household net worth on the other hand increased by nearly one per cent thanks to higher equity values, pension assets and mutual funds.
What does this mean for Canadian debt settlement?
These statistics from the National Debt Agency are very important because they clearly demonstrate the true picture of Canadians’ ability to settle debts. It means that our ability to settle our debts has improved by some margin – which is indeed a demonstration of improved financial stability among individuals and families in the country.
As a debtor, this should give you sufficient confidence to move with speed and take advantage of all available debt relief options. This is the best time to utilize avenues like debt settlement and debt consolidation in Canada. Such a setting creates room for more people to get out of debt by making it easy to take advantage of prevailing conditions and the overall positivity in Canada.