I have a silly question that I have been trying to figure out. It doesn't make any sense to me. I have read the statistic that Canadian "household debt to disposable income" is 165%. I can't find the definition of this anywhere. Does household debt include mortgage? If so, it would seem low - since everywhere it says mortgage debt should be 2.5-3x your income. Wouldn't you already be 250% then? And DISPOSABLE income? IS this not income after taxes AND fixed expenses? What fixed expenses would they include? Obviously mortgage, but what else?
Income tax rates here are exceptionally high...I bring home 65% of my income after taxes. Then after fixed expenses of mortgage/property tax I am at 49% (taking only half since I split w/DH). This doesn't include any other expenses... I get a debt/disposable income number of 688%! If I take off the mortgage, I get 87%. But that would be putting all the debt on me - if I split it (assuming DH owes half), I get 43% for me & 51% for DH.
SO does it include mortgage? If not, then Canadians are THAT much more in debt than us? We would have owe a combined $80K to be that in debt w/o a mortgage...it doesn't seem possible...especially when you consider there would have to be people much higher than that to average our people like us! What is wrong with my math here....