Our Scans · (FS.6.02) Personal Debt & Liabilities · Weekly Summary

• People across the UK will face a record level of debt in the coming years, with the average household expected to owe nearly £17,200 by 2026. The Big Issue
• As the Chart of the Week shows, countries with high levels of household debt and a large share of borrowing issued at floating rates are more exposed to higher mortgage payments resulting in a higher risk of defaults. Eurasia Review
• An adverse shock to the Canadian economy would make it more difficult for households to service their debt and could also reduce their net worth and their access to credit. Bank of Canada
• The main risk to the consumer spending outlook for 2024 is the high debt levels of households in an elevated interest rate environment, which may constrain their ability to spend on other goods and services. Thailand Business News
• High holdings of wealth could be considered a source of support for households, especially against record levels of household debt in Australia. Amp
• A major wild card for Canada, with its high levels of household debt, is the rising impact of high interest rates on mortgage costs. The Globe and Mail
• Today's Fed rate hike means that borrowers will continue to see higher interest rates too, on mortgages, credit card debt, and personal loans. NextAdvisor with TIME
• A severe recession and years of emergency borrowing left Greece with a whopping national debt that reached 400 billion euros last December and hammered household incomes, which will likely need another decade to recover. financialpost
• The proportion of households with high mortgage COLA-DSRs - an awfully technocratic term which just measures how living costs affect people's ability to service debts - is expected to increase throughout 2023 but will still stay below its 2007 peak. Institute of Economic Affairs
• The proportion of total households with high consumer credit COLA-DSRs has slightly increased over the past year, from around 9% to around 10%, and, assuming constant levels of debt, it is expected to remain broadly flat for the remainder of 2023. Bank of England
• The most recent Fed rate hike means that borrowers will continue to see higher interest rates too, on mortgages, credit card debt, and personal loans. NextAdvisor with TIME
• One factor that may cause growth to slow by more than expected is if households are more responsive to the sizeable and widespread global monetary tightening, given an environment of high household debt and a decline in housing prices from what had been very elevated levels. Reserve Bank of Australia
• With Australia having one of the largest ratios of household debt to income, the ongoing rate rises threaten hundreds of thousands of mortgage holders with financial catastrophe. World Socialist Web Site
• Current vulnerabilities facing the banking industry include high household and corporate debt levels, the rising cost of debt and increased global uncertainty around fiscal and monetary policy. Advisor's Edge
• A severe recession and years of emergency borrowing left Greece with a whopping national debt that reached 400 billion euros ($433bn) last December and hammered household incomes, which will likely need another decade to recover. Al Jazeera
• MACTAN, Cebu - A recent surge in credit card usage by Filipinos amid elevated in fl ation and interest rates could lead to a spike in household debt and pose a risk to financial stability. BusinessWorld
• The debt problem of households and corporate sector could become serious in 2023 as real estate and asset values decline due to higher interest rates. swissinfo.ch
• Household savings will decline to below pre-pandemic levels, with some households taking on more debt to keep up with the rising cost of living. CityAM
• Canada's central bankers observed that they must contend with a vulnerability the U.S. does not have: high levels of household debt. financialpost
• The share of household disposable income eaten up by debt payments was still below pre-pandemic levels at the end of last year, but will rise to record levels by the second half of 2023. RBC Thought Leadership
• Countries with high levels of household debt - such as South Korea and Australia - will be hard hit, with the EIU giving below-consensus GDP growth forecasts of 1.3% and 1.5% for Australia and South Korea respectively. Top1000Funds.com

Last updated: 23 April 2024