Today's.
Brandon's Blog is titled The Household Debt to Income Ratio.
How COVID-19 Changed This One Simple, Effective Measure.
Almost 1 year ago,
Brandon wrote a blog on how COVID-19 has changed families lives and what effect
it's had on their household debt to income ratio and the family budget.
He spoke about pre-pandemic debt pressures
and the uncertainty during COVID-19
of how families were going to pay their debts,
the impact of the government programs to help families and businesses in Canada
during the COVID-19 pandemic, the effect it had on the household debt
to income ratio, and his prediction for 2021.
Now that Statistics Canada very recently
came out with a report on Canadians' household debt to income
ratio for the fourth quarter of 2021, Brandon updated this blog
and updated it for 2022.
My name is Ira Smith, President of Ira Smith Trustee & Receiver, Inc.
First,
the Ira Smith Team hopes that you and your entire family are remaining safe,
healthy and secure during this coronavirus pandemic.
Ira Smith Trustee & Receiver Inc. remains fully
operational. Both Brandon Smith and myself
are available to speak to you and answer any questions you may have.
We are doing it all either by telephone or video meeting.
So if you have any questions at all about
this Brandon's Blog or anything else, feel free to shoot us a message.
Give us a phone call.
We would love to speak with you.
I hope you can watch until the end of this
video because I know you will find it informative.
Brandon gives a summary of what
the household debt to income ratio was pre-pandemic,
what happened during the first year
of the pandemic, goes over his forecast for 2021 and then provides information
regarding the recent Statistics Canada report that shows in the fourth quarter
of 2021, the average household debt to income ratio started to rise.
What was the reason for that?
During the pandemic, the beginning and even the start
of the second year, there were mortgage deferrals, other loan deferrals.
There was funds being transferred by the federal government.
Cash coming into families' homes
helped in reducing the household debt to income ratio.
But then all the deferrals stopped
and the government programs, the majority of them, stopped as well.
So now there was not that government cash
coming into families and families had to rely solely on the income they earned.
And so during the fourth quarter of 2021, Statistics Canada reports that the household
debt to income ratio of families in Canada began to rise again.
Brandon then discusses what he sees for 2022 and talks about the importance
of keeping your household debt to income ratio in check.
So I invite you to read the entire Brandon's Blog below.
I know you will find it informative.
Again, Ira Smith Trustee & Receiver Inc.
hopes that you and your entire family are remaining safe,
healthy and secure during this coronavirus pandemic.
Ira Smith Trustee & Receiver Inc. remains fully operational.
Both Brandon Smith and myself
are holding all meetings by telephone or video.
So if you have any questions at all either
about this Brandon's Blog or anything else at all, pick up the phone and call us.
Shoot us an email.
We would love to hear from you.