Line of Credit and Credit Card Debt Decreased in 1Q
TORONTO--(Marketwire - Jun 1, 2011) - TransUnion's quarterly analysis of Canadian credit trends found that total debt per consumer (excluding mortgage) for the nation increased 4.5 percent in the last year (1Q11: $25,597 from 1Q10: $24,497). The report is part of a series of quarterly consumer lending sector analyses focusing on trends in the credit card and automotive lending industry. Leveraging TransUnion's credit database, the information for this analysis is culled quarterly from anonymous credit files of all credit-active Canadian consumers, providing an in-depth perspective on how they are managing their credit health.
1Q 2011 - Overall Debt/Credit Card Statistics
Analysis
"Our first quarter data shows a continued increase in the total debt per consumer, although the trend still remains modest compared to the double digit, pre-recession levels. The post-Christmas seasonal pattern remained intact, with a quarterly drop in credit card balances per consumer and a slight increase in delinquency rates compared to the fourth quarter of 2010. All in all, the first quarter was typically Canadian, with minor shifts in spending, continued fiscal management of delinquencies and modest confidence increases supporting continued spending increases."
Thomas Higgins, TransUnion's vice president of analytics and decisioning
1Q2011 - Lines of Credit Statistics
Analysis
"Lines of Credit continue to be the main financing vehicle for Canadians accounting for over half of all non-mortgage debt. Although LOC debt increased from the previous year, the first quarterly drop in several years combined with continued increases in installment debt may be an early sign that Canadians are shifting to a more conservative and restrictive form of financing to manage their debt loads."
Thomas Higgins, TransUnion's vice president of analytics and decisioning
1Q2011 Auto Statistics
Analysis
"The modest growth rate in auto financing debt is balanced by increases in installment debt where the major banks have continued to enter the direct auto financing market, offering additional choices for consumers. Positive declines in delinquency rates continue to bode well for Canadians managing their current debt loads."
Thomas Higgins, TransUnion's vice president of analytics and decisioning
TransUnion's Market Trends
TransUnion's Market Trends is an in-depth, full sample solution that provides statistical information every quarter from TransUnion's national consumer credit database. Each Canadian consumer record contains hundreds of credit variables that illustrate consumer credit usage and performance. By leveraging Market Trends, customers from a variety of industries can analyze industry trends over an entire business cycle, helping to understand consumer behaviour in different geographic locations throughout Canada.
About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Based in Toronto, with global headquarters located in Chicago, Illinois, TransUnion provides service and support throughout Canada. Visit www.transunion.ca to learn more.
Graphics and/or photographs to accompany this release can be obtained by members of the media by contacting Cliff O'Neal at 312-985-2540 or coneal@transunion.com or Dave Blumberg at 312-985-3059 or dblumbe@transunion.com.
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