Business

A new analysis suggests Canadian non-mortgage debt rose to its highest level in nearly a decade during the second quarter.

The latest report of Canadian debt trends by TransUnion found the average consumer's non-mortgage debt load rose to $26,221 in the second quarter.

That's up 0.74 per cent from the first quarter of 2012 and up 2.41 per cent from a year earlier.

The credit reporting firm said that's the highest average debt per person it has seen since it began tracking the variable in 2004.

TransUnion says there was a big increase in auto loans, partly offset by less money drawn on lines of credit.

The average credit-card debt was down from a year ago but up from the first quarter.

A moderately encouraging sign was that delinquency or default levels remained low across the board.

"We are in a unique situation because while it is somewhat disconcerting to see average consumer total debt reach its highest level since we've been tracking this variable, Canadian consumers appear to be able to manage this debt as delinquency levels have dropped across all of the major credit vehicles," said Thomas Higgins, TransUnion's vice president of analytics and decision services.

"It's quite possible that this is a trend that will continue as consumers take advantage of the low interest environment. However, if there are any sudden economic shifts such as a significant rise in unemployment, then it's quite conceivable that delinquencies will rise with debt levels."