Canadian debt levels reaches new high
Key points:
- Equifax Canada has released its Q3 debt report, showing that the average Canadian’s non-mortgage debt has reached a new high of $22,837.
- The report also shows that the number of Canadians with a credit score of 600 or lower has increased by 4.3% since last year.
- Meanwhile, Yahoo Finance Canada reports that total Canadian consumer debt has hit $2.36 trillion, driven by increases in mortgage and credit card debt.
- Experts warn that the rising levels of debt could have serious consequences for both individuals and the Canadian economy as a whole.
Canadian consumers are taking on more debt than ever before, according to a recent report by Equifax Canada. The credit-monitoring company’s Q3 debt report shows that the average Canadian’s non-mortgage debt has reached a new high of $22,837, up 2.6% from last year. This marks the sixth consecutive quarter of year-over-year increases in non-mortgage debt.
The report also shows that the number of Canadians with a credit score of 600 or lower has increased by 4.3% since last year, indicating that more and more people are struggling to manage their debt. This is particularly concerning because a credit score of 600 or lower is considered “fair” to “very poor,” and can make it difficult for individuals to access credit or secure good interest rates on loans.
Meanwhile, Yahoo Finance Canada reports that total Canadian consumer debt has hit $2.36 trillion, driven by increases in mortgage and credit card debt. The report notes that the rising levels of debt could have serious consequences for both individuals and the Canadian economy as a whole.
Experts warn that if consumers continue to take on more debt without a corresponding increase in income, they may find themselves unable to make their monthly payments. This could lead to a spike in defaults and bankruptcies, which could have ripple effects throughout the economy.
In addition, the high levels of consumer debt could put downward pressure on consumer spending, as people become more cautious about taking on additional debt. This could in turn lead to slower economic growth and potentially even a recession.
Overall, the rising levels of consumer debt in Canada are a cause for concern. Experts recommend that individuals take steps to manage their debt and avoid taking on more than they can handle. This could include paying off high-interest credit card debt, avoiding unnecessary expenses, and creating a budget to help track spending. By taking these steps, consumers can help protect themselves from the potential consequences of excessive debt.
