Growth of Canadian non-mortgage debt has dropped 30% over the last year, says Equifax Canada’s National Credit Trends report.
The report states credit card balances are decreasing, while other credit products such as bank loans and lines of credit showed only moderate growth compared to 2011 levels.
Total consumer non-mortgage indebtedness in Q2 2012 increased by only 3.1% in the last 12 months, compared to 4.4% in 2011.
“Non-mortgage consumer indebtedness has increased at a very moderate rate, with most of the growth coming from people’s existing credit facilities, as opposed to opening new accounts,” says Nadim Abdo, vice president, consulting and analytical services, Equifax Canada. “We are also seeing a continued decrease in serious consumer delinquency and bankruptcy.”
The credit product showing the largest increase in outstanding balances was non-bank auto finance loans, which jumped up 8%.
“Consumer demand for new credit is now 6% lower than it was prior to the recent financial crisis in 2008,” says Abdo.