Credit card debt up 15 per cent in Q4, younger Canadians feel hardest pinch: Equifax

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 particularly 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 whole 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 totally felt on owners as many haven’t but renewed their mortgages, however youthful Canadians are feeling the pinch of inflation significantly laborious.

Non-mortgage debt ranges have 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 soar in missed debt funds within the fourth quarter, and the delinquency fee amongst these aged 18 to 25 rose nearly 31 per cent yr over yr, in contrast with a 17 per cent enhance throughout all shoppers.

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