Canadian credit card debt soared in the last three months of 2022: report

TORONTO –

Canadian bank card debt soared within the final three months of 2022 amid rising rates of interest and stubbornly excessive inflation with youthful Canadians specifically counting on credit score to make ends meet.

Credit monitoring company Equifax says Canadians’ bank card debt elevated by greater than 15 per cent from the identical interval a yr earlier and totalled greater than $100 billion for the primary time.

In its newest quarterly credit score traits report, the company says general client debt rose within the fourth quarter of 2022, with complete debt at $2.37 trillion, up greater than six per cent from the identical interval in 2021.

Equifax says the consequences of upper rates of interest are but to be absolutely felt on owners as many haven’t but renewed their mortgages, however youthful Canadians are feeling the pinch of inflation notably onerous.

Non-mortgage debt ranges had been up 5.4 per cent within the fourth quarter, however for millennials that debt rose by 8.4 per cent.

Consumers with out mortgages noticed the best leap in missed debt funds within the fourth quarter, and the delinquency charge amongst these aged 18 to 25 rose virtually 31 per cent yr over yr, in contrast with a 17 per cent enhance throughout all customers.

This report by The Canadian Press was first revealed March 9, 2023.