Equifax reports Canadians are taking on more debt

An article in thestar.com says that Canadians were carrying more debt in the second quarter of 2014 than a year earlier but they’re also doing a better job of paying it off on time. This shows a report from credit scoring agency Equifax.

The national debt load rose to $1,447.5 billion in the three months ended June 30, up 7.2 per cent from a year earlier, the agency said in its quarterly National Consumer Credit Trends.

Excluding mortgages, the average Canadian consumer’s debt load was $20,759, the agency also said in a report to be released Thursday.

“Credit card balances of new cardholders continue to increase, while credit limits and new card issuance have slowed. This may be an indication that promotional activity of credit card issuers is slowing down,” Malina explained.

At the same time, Canadians are doing a better job of carrying their debt load, the agency found.

Canadian households’ debt loads have been rising since 2008, fuelled in part by record low interest rates aimed at kick-starting a struggling economy.

Equifax uses data from 25 million files on consumer credit history, including national credit cards, loans and mortgages, in compiling the report.

(To read  the full report click here >>> thestar.com, Canadians carrying more debt, report finds by Dana Flavelle Economy, Business Reporter)

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