The Canadian Press - ONLINE EDITION

Canadians steadily paying off debt quicker, borrowing less: Equifax study

  • Print

TORONTO - Fewer Canadians are letting their debt repayments lapse for more than three months compared with a year ago, according to a report out today by credit monitoring firm Equifax Canada.

The study found that the percentage of unpaid non-mortgage debt classified as going into 90-day delinquency settled at a moderate 1.2 per cent in the first quarter of this year, a slight increase from 1.19 per cent from the fourth quarter.

But Nadim Abdo, Equifax's vice-president of consulting solutions, says this rate was markedly lower compared with 1.39 per cent in the first quarter of 2012.

Equifax said Canadian non-mortgage debt totalled $500.8 billion during the period.

That was up from $497 billion in the same period in 2012.

In the past, Equifax studies have shown that consumers tend to take out more loans, and do not pay them back as quickly, during a volatile economy or periods of high unemployment.

"There seems to be more financial control by the consumers and by the banking and financial institutions," said Abdo.

"This is a very positive story. It shows a lot of financial control. People are not kind of going crazy spending when they shouldn't be spending, which is the general idea of what it should be."

Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have warned repeatedly about the dangers of high household debt and the consequences when interest rates eventually start to rise.

Economists have suggested that high household debt and a cooling housing market will hold back the Canadian economy.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Spring fashion trends

View more like this

Photo Store Gallery

  • Down the Hatch- A pelican swallows a fresh fish that it caught on the Red River near Lockport, Manitoba. Wednesday morning- May 01, 2013   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A squirrel enjoys the morning sunshine next to the duck pond in Assiniboine Park Wednesday– June 27, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google