Another year older and deeper in debt
Aug 23, 2012 / 7:21 am
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."
Read more Business News
|QHR Technologies Inc||0.61||0.00|
|Anavex Life Sciences||0.735||0.00|
|Copper Mountain Mining||1.79||-0.02|
With so many choices and variables, how do you find the perfect fit? Before you start your search, it’s a good idea to narrow down the playing field by looking at what would fit you best. Here&r...
My closest partner is my wife and this week I just wanted to share some of our work from her perspective, as she is more of a "thinker" than me, and I wanted to share our activities and goa...
Photo: ContributedAn artist's rendering of the finished SOPA square.This is good news for Kelowna and the valley. Penticton’s Greyback Construction has signed a management contract with the...
- Asian markets down over concerns
- Global energy companies 'dead serious' about B.C. natural gas, says minister
- Teletoon Canada plans to air 'Inspector Gadget' reboot
- TSX drops in early market trading
- Canadian dollar takes a hit
- Apple unveils music streaming service
- What's up Apple?
- Canadian dollar rises on job report
- Tom Cruise backs Wal-Mart
- Royal Bank to edge up mortgage rates
- Loonie surges, stocks to open higher
- Canada adds 95,000 jobs in May