![]() ![]() While some financial pressure has been offset through continued savings growth and strong employment, many Canadian consumers have accessed credit as a means to short-term liquidity.”ĭata shows that the number of Canadians with credit card debt went up by 3.3 per cent in the first quarter of 2023, and consumers in all risk categories are accumulating more debt with the riskiest group, subprime consumers who have lower credit scores, seeing an 8.9 per cent year-over-year increase in their debt levels.Īccording to the report, there has been a nine percent increase in average consumer balances across credit products, surpassing $4,000. “However, the combined pressure of a high cost of living and elevated interest rates has created a payment shock, as the cost of debt has grown even heavier for some Canadian households. “Canadians, like the economy, remain persistently resilient,” Matthew Fabian, director of financial services research and consulting at TransUnion in Canada said in a press release. The report also highlights that while Canadian credit consumers have historically shown resilience, there are now signs of some individuals, such as Gen Z, who are in their early careers struggling in this higher interest rate environment. However, the current Credit Industry Indicator levels are in line with pre-pandemic levels, with a slight year-over-year increase driven by increased credit demand.Īccording to the report, increased debt levels and rising interest rates have led to increased minimum payments, placing additional strain on already financially stressed consumers. In the second quarter of 2023, this analysis resulted in Canada achieving a Credit Industry Indicator score for of 106, marking a 1.6-point increase compared to the same period in 2022. To assess Canadians' financial management and debt handling, TransUnion examined demand, supply, consumer behaviour, and performance for its Credit Industry Indicator metric. With the cost of living consistently on the rise, more Canadians are continually turning to credit, with the average credit card balance now standing at $4,000, according to a new report from TransUnion.ĭata that came from the TransUnion’s Q2 2023 Credit Industry Insights Report shows a 4.2 per cent increase, or $94.8 billion, in Canadian household debt compared to the previous year, with a total debt of $2.34 trillion for Canadians.Īccording to the report, this growth was primarily fueled by mortgage loan debt, which has maintained a consistent pace of growth for the fifth consecutive quarter at a nine per cent year-over-year increase, as existing home sales rebounded. ![]()
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