Equifax Canada reported an increase in the number of consumers who missed a non-mortgage debt payment in the third quarter compared to the previous year. The 90-day non-mortgage balance delinquency rate rose to 1.63%, marking a 14% increase from the same period last year. This uptick coincided with a 3.4% growth in overall consumer debt, reaching $2.62 trillion.
On an individual level, the average non-mortgage debt per consumer in the third quarter stood at $22,321, reflecting a $511 increase from the previous year. Rebecca Oakes, Equifax Canada’s vice-president of advanced analytics, noted initial signs of stabilization earlier in the year but pointed out renewed financial strain in the third quarter, particularly among younger households and urban homeowners.
Oakes highlighted that credit card spending typically surges during the holiday season, emphasizing that the upcoming weeks will be crucial for many Canadian consumers to manage their finances effectively.