Average Canadian debt over $25,000
Debt is growing in Canada with the average Canadian owing 4.5 per cent in the first quarter of this year. Excluding mortgages the average debt per consumer is at $25,597 compared to last year's $24,497.
The results of a TransUnion study found that debt is still a way of life for many Canadians. Throughout the nation debt per consumer increased over the past year with those in Quebec and Newfoundland and Labrador having the greatest increase rising 7.8 percent this year.
25.12 million consumers make up an active credit consumer population. Credit card debt has declined slightly over the year with the average consumer's debt at $3,539 compared to last year's $3,688. While the debt on credit cards has declined the delinquency rate for payments has increased to 0.38 in the first quarter of 2011 with the highest credit card delinquencies in Prince Edward Island.
The highest increase in debt comes from Lines of Credit which accounts for over 41 percent of outstanding debt in Canada. Ontarians and residents of Alberta are the largest users of Lines of Credit accounting for over 57 percent of usage.
Repayments on Lines of Credit has increased with only 0.21 of the debt being classified as delinquent.
, Vice President of analtyics and decisioning for TransUnion said in a press release:
“Our first quarter data shows a continued increase in the total debt per consumer, although the trend still remains modest compared to the double digit, pre-recession levels. The post-Christmas seasonal pattern remained intact, with a quarterly drop in credit card balances per consumer and a slight increase in delinquency rates compared to the fourth quarter of 2010. All in all, the first quarter was typically Canadian, with minor shifts in spending, continued fiscal management of delinquencies and modest confidence increases supporting continued spending increases.”