Canadian Consumer Debt Loads Decreased For First Time in 10 years

As strict stay-at-home orders were imposed and non-essential businesses were forced to temporarily close, many Canadians began to significantly reduce their consumption of goods and services.

According to recent data released by Equifax Canada, which is the country’s largest credit reporting firm, the month of March saw the first decline in consumer debt balances over the last ten years. The unavailability of restaurants and stores during the pandemic led to a decrease of 0.5% on non-mortgage consumer debt balances. The most significant decrease in debt loads was attributed to the youngest age group consisting of those between 18 to 25 years of age. This group saw a decrease of 1% on non-mortgage debt balances.

In the meantime however, Equifax reported an increase of 1.22% in delinquency rates among Canadians in the first quarter of 2020. Given the availability of a variety of financial aid resources including government benefits and payment deferrals, the delinquency rate has not been subject to sudden volatility that otherwise may have occurred. In the long run however, that may change.

Information for this briefing was found via Bloomberg Equifax Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Fewer People Feel Proud To Be Canadian Today Than In 2019

Oh no, Canada. A recent poll conducted by Leger reveals that fewer people feel proud...

Tuesday, July 2, 2024, 02:06:00 PM

Justin Trudeau Passes Bill C-10 to Regulate Social Media Programming, Streaming

On Tuesday, lawmakers in Ottawa passed a new bill that would control content distributed by...

Wednesday, June 23, 2021, 11:42:00 AM

MP Michelle Rempel Garner Calls Out Liberals for Spending $6 Million On A Quarantine Hotel In 2022

A Calgary MP, Michelle Rempel Garner, is questioning the government over the spending of millions...

Friday, February 3, 2023, 06:18:00 AM

Continued Low Employment Levels Suggest Canada’s Job Recovery has Slowed Down

Despite the Canadian economy reopening alongside the lifting of various restrictions, it appears the job...

Friday, July 10, 2020, 11:30:00 AM

Federal Government Proposes to Extend CERB Program, Could Cause Current $60 Billion Budget to Double

In response to the financial hardships many Canadians suddenly faced in wake of the coronavirus...

Thursday, June 11, 2020, 05:57:00 PM