The Globe and Mail reports in its Friday edition that for the first time since the Bank of Canada began raising interest rates in 2022, total interest payments made by households declined on a quarterly basis as the bank's recent string of rate cuts delivered much-needed relief to borrowers. The Globe's Jason Kirby writes that at the same time, household indebtedness relative to incomes dropped again in the third quarter, continuing a trend that began at the start of 2023. It all suggests Canadians have managed their finances reasonably well, despite concerns going into the rate-hike cycle about their heavy debt loads. Households paid $176.9-billion in interest in the third quarter, down 0.6 per cent from the second quarter, according to Statistics Canada. While rate cuts have helped most borrowers, rising incomes have disproportionately benefited the top 40 per cent of earners, leaving lower and middle-income households still strained. But economists are optimistic household finances in general have turned a corner. "While mortgage resets will continue to add upside risk in the near term, income gains and ongoing rate cuts will relieve some pressure on household finances," said BMO economist Shelly Kaushik in a note.