Economic pressures may affect the credit performance of consumers, especially young adults

– Financial challenges may be driving the rise in multigenerational living –

Equifax Canada Market Pulse Quarterly Report on Consumer Credit Trends

TORONTO, Aug. 27, 2024 (GLOBE NEWSWIRE) — Consumer debt rose to $2.5 trillion in the second quarter of 2024, up 4.2 per cent from the second quarter of 2023, the latest figures show.
Market Pulse Consumer Credit Trends and Insights Report from Equifax Canada. Credit cards remained the primary driver of rising debt, with outstanding balances of $122 billion, up 13.7 percent from Q2 2023. On average, cardholders had more than $4,300 in credit card balances, the highest level since 2007. The average credit card balance per consumer continued to grow despite a slowdown in consumer spending. This increase was primarily attributed to a decline in card payment rates, with consumers under the age of 35 seeing the fastest decline in card payment rates. The increase in credit card balances for consumers of all ages was more significant for mortgage holders, where the average credit card balance increased 11.9 percent compared to Q2 2023, while non-mortgage consumers saw a 7.7 percent increase.