The Following Release Was Originally Scheduled for Thursday, November 14 but Due to an Embargo Error It Is Being Distributed on Wednesday, November 13, 2013
TORONTO, ON--(Marketwired - Nov 13, 2013) - TransUnion's quarterly analysis of Canadian credit trends found that the average consumer's total debt (excluding mortgage) in Q3 2013 increased $225 to $27,355. This quarterly increase of 0.83% was in line with the rise observed in Q2 2013 after a significant decline (-2.00%) experienced in the first quarter of 2013. On a year-over-year basis, total debt increased 2.19% from $26,770 in Q3 2012.
Despite the increase, two of the country's largest cities -- Toronto and Vancouver -- experienced both quarterly and yearly declines in average consumer total debt. Montreal, the country's second largest city by population, saw minimal rises on both a quarterly and yearly basis. The only major city to experience a rise in debt greater than the national average was Edmonton, with total debt rising 4.6% in the last year.
Avg Consumer Debt |
Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | Q3 2013 | Q/Q Chg | Y/Y Chg | |||||||
Calgary | $37,425 | $39,824 | $38,419 | $38,167 | $37,920 | -0.65% | 1.32% | |||||||
Edmonton | $30,255 | $33,005 | $31,719 | $31,625 | $31,658 | 0.10% | 4.64% | |||||||
Montreal | $18,393 | $19,651 | $18,293 | $18,495 | $18,527 | 0.17% | 0.73% | |||||||
Ottawa | $24,395 | $25,393 | $24,273 | $24,467 | $24,438 | -0.12% | 0.18% | |||||||
Toronto | $24,078 | $25,395 | $23,833 | $24,127 | $24,067 | -0.25% | -0.05% | |||||||
Vancouver | $40,813 | $38,357 | $40,390 | $40,412 | $40,174 | -0.59% | -1.57% | |||||||
"While we saw a rise in total debt on both a quarterly and yearly basis for the nation, it is a positive sign that Canada's largest metropolitan areas appear to be getting a better handle on their total debt picture," said Thomas Higgins, TransUnion's vice president of analytics and decision services. "Having said that, we still foresee a significant increase in average consumer debt through the end of the year. This rise is due to traditional debt patterns in the fourth quarter where more consumers take on debt during the holiday shopping season."
The increase in average debt varied throughout Canada, with provinces experiencing year-over-year changes from a low in BC of -0.40% to a high in Saskatchewan of 15.49%.
Avg Consumer Debt |
Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | Q3 2013 | Q/Q Chg | Y/Y Chg | |||||||
Canada | $26,768 | $27,485 | $26,935 | $27,131 | $27,355 | 0.83% | 2.19% | |||||||
British Columbia | $38,837 | $37,244 | $38,619 | $38,672 | $38,682 | 0.03% | -0.40% | |||||||
Alberta | $33,688 | $37,377 | $36,223 | $36,150 | $36,200 | 0.14% | 7.46% | |||||||
Ontario | $25,937 | $26,901 | $25,735 | $25,914 | $25,928 | 0.05% | -0.03% | |||||||
Quebec | $19,174 | $20,102 | $19,131 | $19,455 | $19,695 | 1.23% | 2.72% | |||||||
Consumer Debt - Quarterly/Yearly
Total consumer debt increases were seen across all product categories.
"The big story on the consumer debt front is that despite an overall increase in balances, lines of credit borrowers continue to buck the trend, with balances dropping for three consecutive quarters," said Higgins. "This is important because lines of credit make up about 40% of all consumer debt, when excluding mortgages."
Q1 2012 |
Q2 2012 |
Q3 2012 |
Q4 2012 |
Q1 2013 |
Q2 2013 |
Q3 2013 |
||||||||
Credit Cards | $3,462 | $3,556 | $3,573 | $3,637 | $3,463 | $3,585 | $3,650 | |||||||
Lines of Credit | $34,107 | $33,721 | $34,050 | $35,247 | $34,951 | $34,641 | $34,151 | |||||||
Installment Loans | $21,974 | $22,493 | $22,849 | $23,224 | $23,269 | $23,735 | $24,107 | |||||||
Auto Captives | $18,212 | $18,881 | $19,228 | $19,345 | $19,172 | $19,518 | $19,837 | |||||||
Consumer Delinquencies - Quarterly/Yearly
Delinquency levels remained low for all credit products with lines of credit and auto captives continuing to have the lowest percentages.
"The relatively low delinquency levels observed in the third quarter are a positive sign that Canadian consumers are managing their greater debt loads," said Higgins. "Credit card delinquencies saw the biggest decline on a percentage basis in the last year, which is a positive as we embark on the final three months of the year when credit card usage tends to pick up."
Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | Q3 2013 | Q/Q Chg | Y/Y Chg | ||||||||
Credit Cards | 0.30% | 0.30% | 0.32% | 0.24% | 0.24% | 0.93% | -18.4% | |||||||
Lines of Credit | 0.19% | 0.18% | 0.18% | 0.17% | 0.18% | 4.62% | -6.31% | |||||||
Installment Loans | 1.22% | 1.18% | 1.18% | 1.14% | 1.26% | 10.35% | 3.25% | |||||||
Auto Captives | 0.10% | 0.10% | 0.10% | 0.10% | 0.11% | 12.99% | 12.32% | |||||||
Three Highest Delinquency Provinces
Credit Cards | Lines of Credit | Installment Loans | Auto Captives | |||
PEI 0.51% | BC 0.24% | BC 1.64% | MB 0.26% | |||
NB 0.43% | AB 0.23% | AB 1.35% | NB 0.18% | |||
NS 0.36% | PEI 0.24% | PEI 1.85% | PE 0.23% | |||
Three Lowest Delinquency Provinces
Credit Cards | Lines of Credit | Installment Loans | Auto Captives | |||
QC 0.18% | QC 0.10% | QC 0.45% | QC 0.06% | |||
SK 0.21% | NL 0.12% | NL 1.04% | BC 0.07% | |||
BC 0.25% | SK 0.13% | SK 1.00% | NL 0.07% | |||
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, culled from anonymous credit files. 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 information and risk 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 high quality data, and integrating advanced analytics and enhanced decision-making capabilities. 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 Burlington, Ontario, with global headquarters located in Chicago, Illinois, TransUnion provides local service and support throughout Canada. Visit www.transunion.ca to learn more.
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