Canadian Households Are Just 0.01 Points From The Mother Of All Debt Records. The debt service ratio (DSR) is the percent of disposable income used for loan payments. Disposable income is the cash left over, after the government and non-discretionary payments take their cut. The ratio is an easy concept to understand, but the meaning is often misunderstood. Often you’ll hear that a high debt ratio is fine, because of the level of defaults are low. That’s great for banks, but that misses the benefit to the economy.
Canadian Households Are Just 0.01 Points From The Mother Of All Debt Records. The debt service ratio (DSR) is the percent of disposable income used for loan payments. Disposable income is the cash left over, after the government and non-discretionary payments take their cut. The ratio is an easy concept to understand, but the meaning is often misunderstood. Often you’ll hear that a high debt ratio is fine, because of the level of defaults are low. That’s great for banks, but that misses the benefit to the economy.
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