While rising delinquency levels have started to slow, pockets of stress are still evident in some areas
Total consumer debt in Canada rose to a record of over $2.6 trillion in the second quarter as more Canadians fell behind on payments, according to two of the largest consumer credit reporting agencies.
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Equifax Inc. said in its consumer credit report that debt among Canadian consumers is up 4.18 per cent in the quarter from the year before to $2.68 trillion and up 1.3 per cent from the first quarter.
TransUnion said Canadian consumer debt hit a record $2.64 trillion in the second quarter, with debt levels growing faster than the number of Canadians using credit as existing borrowers carried larger balances than a year earlier.
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“There seems to be a significant amount of uncertainty in the current environment and we need to be aware of the impact that any additional economic pressures could have on this particular consumer group,” said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada.
Oakes said consumers remain cautious, particularly around major purchases. While rising delinquency levels have started to slow, pockets of stress are still evident in some areas.
Although the credit market remained healthy, the data suggest Canadians are experiencing increasingly different financial realities, said TransUnion.
