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Consumer debt soars, says credit agency

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Guest | 23 Aug 2012, 01:18 PM Agree 0

“We are in a unique situation because while it is somewhat disconcerting to see average consumer total debt reach its highest level since we’ve been tracking this variable, Canadian consumers appear to be able to manage this debt as delinquency levels have dropped across all of the major credit vehicles,” said Thomas Higgins, VP of analytics for TransUnion. “It’s quite possible that this is a trend that will continue as consumers take advantage of the low interest environment.”
The agency’s latest report of Canadian debt trends found the non-mortgage debt load rose to $26,221 in the second quarter -- 0.74 per cent from the previous three months and a whopping 2.41 per cent from a year ago.
A big driver of that debt spike were auto mortgages, even as the average credit-card debt fell.
TransUnion calls the Q2 reading the highest individual debt load since it began tracking the variable in 2004.
Still, delinquency or default levels remained low across the board.
That’s good news for property investors for two reasons: consumers are managing modest rent increases; and their ability to buy homes instead of rent them remains challenged.
  • Doug Bodaly | 23 Aug 2012, 06:44 PM Agree 0
    So consummer debt creeps up would be an accurate header.
    Until corporate Canada starts to reinvest (spend) the 500 billion they are sitting on consummers are left with task to support the economy. Dont chastize them to heartily. Economic crisis are seldom the result of the conduct of the middle and lower classes. Look at the people who have and hoard money and power.
    Try doing some accurate reporting instead of resorting to Tabloid mentality
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