Canadians swimming in more red ink

TORONTO – Canadian consumers are adding more to their credit card balance, setting a record this year, and the number will likely keep climbing for the holidays.

It could be an early warning signal going into the new year about the strength of the consumer. Debt levels continue to climb, and servicing that debt is becoming more of a struggle.

TransUnion’s quarterly tabulation says total Canadian credit card balances have topped $100-billion, and non-mortgage delinquency levels are now at five-and-a-half per cent.

The average non-mortgage consumer debt is north of $30,000.

“So, consumers continue to take on more a little bit more debt — less than they were the last few years, but delinquency rates are starting to increase, so it’s a bit of a tightening of the wallet,” Matt Fabian, director of research and consulting with TransUnion, explains.

Some of those credit card balances are going up to fund day to day living expenses.

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