Title: The debt-to-income ratio of Canadians in 3Q-2011 was 153%, up from 148.3% in 3Q-2010.
Summary: Each quarter, Statistics Canada publishes the average Canadian's debt-to-personal-disposable-income ratio. as of the third quarter of 2011, the average Canadian's debt-to-personal-disposable-income ratio was 153 per cent. That's up from 150.6 per cent in the previous quarter and higher than 148.3 per cent a year ago.
Interpretation: One of the flaws in the debt-to-income ratio is that it lumps together people who have no debt with those who are heavily indebted. So you get seniors who have paid off their mortgages combined with Vancouver and Toronto residents and their mega-mortgages.” Another flaw is it doesn't take equity or assets into account. Also, it measures things that are not directly comparable, namely your entire debt load vs. one year's net pay.