Credit card debt hits record high in second quarter as inflation bites: Equifax – National

Equifax Canada says credit card balances hit an all-time high of $107.4 billion in the second quarter of 2023, a sign that financial stress continued to mount in the face of inflation and rising rates of interest.

The agency says total Canadian consumer debt reached $2.4 trillion in the second quarter.

Vice President of Advanced Analytics Rebecca Oakes says the growth in non-mortgage debt was largely driven by substantial growth in credit card balances and a notable increase in debt among subprime consumers and deep subprimes.

The Equifax Canada report indicates that the average non-mortgage debt per credit-active consumer increased slightly to $21,131.

Oakes says that despite the increase in credit card debt, credit card delinquencies are not increasing as fast as expected, in part because of an influx of new credit card users that has also contributed to the growth of overall non-mortgage debt.

Equifax Canada says many Canadians are slowing down their credit card spending, but lower-income households are having a harder time cutting back on spending, and fewer consumers have been able to pay off their monthly credit card balance in full. during the second trimester.