Consumer debt and delinquency rates climb in third quarter: Equifax

Total consumer debt remains on the rise fuelled in part by low interest rates, it said.

“What we are seeing in Western Canada and Newfoundland would be of more concern if people in the two regions hit hard by the oil bust were also piling on a lot more debt and they are not, especially in Alberta and Saskatchewan,” Regina Malina, senior director of decision insights at Equifax Canada, said in a release issued Wednesday.

“The majority of consumers are actually decreasing their debt, but those who are still increasing it are adding larger amounts on average and by enough to increase the total levels. The fact is people who can afford to do so are buying more cars, spending more on housing and borrowing more from financial institutions.”

As of the third quarter, Canadian consumers owed $1.702 trillion, including mortgages, compared to $1.587 trillion a year earlier.

Equifax said auto and instalment loan sectors showed significant increases of 7.8 per cent and 7.7 per cent in the third quarter year-over-year, respectively.

The Canadian Press

Note to readers: This is a corrected story. A previous version did not specify that the average debt of $22,081 does not include mortgages, while the overall debt figure of $1.702 trillion includes mortgages.

by Canadian Press

Consumer debt and delinquency rates climb in third quarter: Equifax

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