Particle.news
Download on the App Store
3 ARTICLES
·
9h ago

1.4 Million Canadians Miss Credit Payments in Q2 as Delinquencies Level Off

Higher borrowing costs have pushed consumer debt past $2.58 trillion, concentrating strain on younger, non-homeowner borrowers.

About 1.4 million Canadians missed a credit card payment in the second quarter, up by 118,000 missed payments from a year ago, an Equifax report said. A consumer pays with a credit card at a store in Montreal on July 6, 2010. THE CANADIAN PRESS/Ryan Remiorz

Overview

  • Equifax reports 1.4 million Canadians missed at least one credit payment in the second quarter, marking an increase of 118,000 from last year but a slight decline from Q1.
  • Total consumer debt rose 3.1% year-over-year to $2.58 trillion while average non-mortgage balances climbed to $22,147 per borrower.
  • Consumers under 36 saw their 90-plus-day delinquency rate surge 19.7% year-over-year to 2.35%, with average non-mortgage debt reaching $14,304.
  • Canadians without mortgages missed payments at a rate of one in 19, nearly double the one-in-37 rate among homeowners, as higher mortgage-renewal costs drive credit-card delinquencies.
  • TransUnion’s Q2 data put total consumer debt at $2.52 trillion (up 4.4% year-over-year) and warn that subprime borrowers remain the most exposed to rising living expenses.