In the third quarter, Equifax Canada reported an increase in the number of consumers who failed to make non-mortgage debt payments compared to the previous year. The 90-day non-mortgage balance delinquency rate rose by 14 percent to 1.63 percent during this period. Concurrently, total consumer debt reached $2.62 trillion, marking a 3.4 percent uptick from the previous year.
Individuals’ average non-mortgage debt in the third quarter stood at $22,321, showing a $511 increase from the previous year. Equifax Canada’s Vice President of Advanced Analytics, Rebecca Oakes, noted initial signs of stabilization earlier in the year but pointed out a resurgence of financial strain in the third quarter, particularly among young households and urban homeowners.
Oakes highlighted that credit card spending typically surges during the holiday season, emphasizing that the upcoming weeks will be critical for many Canadian consumers as they navigate their financial obligations.