The Globe and Mail reports in its Friday edition that Canada's household debt burden is edging lower, an indication that people are hesitant to take on loans at higher interest rates. The Globe's Matt Lundy writes that the ratio of household debt to disposable income eased to 175.5 per cent in the second quarter from 176.7 per cent in the first quarter, based on seasonally adjusted figures released by Statistics Canada. It marked the fifth consecutive quarterly decline. Put another way, the average household owes around $1.76 for every dollar of disposable income. The ratio peaked at 185.4 per cent in the fourth quarter of 2021. "Households remain under pressure from rising rates but have adjusted their behaviour, pushing debt ratios consistently lower," BMO's Benjamin Reitzes said in a note. Canadians increased their borrowing over much of the past two decades, a period that coincided with rising home prices and generally low interest rates. This turned elevated household debt levels into a perennial concern for the Canadian economy. Bank of Canada rate increases over 2022 and 2023 have tested household finances, but so far, the average household is seeing disposable income grow at a faster rate than debt load.