Missed credit payments higher among younger Canadians: report
An Equifax Canada report says missed credit payments were higher among younger Canadians in the second quarter due to living costs and unemployment.
Equifax says one in every 17 Canadians aged 26-35 missed a credit payment, compared with one in 23 overall.
The report says delinquency rates for auto loans and lines of credit were also particularly high among younger Canadians, indicating financial pressures faced by the demographic.
Equifax says the rate of missed credit payments among Canadians aged 26-35 was at 1.99 per cent in the second quarter of 2024.
That’s up 21.6 per cent from a year earlier.
The report says consumer debt levels rose to $2.5 trillion, up 4.2 per cent since the second quarter of 2023.
“Inflation is stabilizing and interest rates are starting to reduce, which is good news for many consumers,” said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada.
“Unfortunately, rising unemployment has offset some of the positives and is driving increased financial stress,” she added.
Canada’s unemployment rate has been steadily rising, hitting 6.4 per cent in July, data from Statistics Canada shows, as high interest rates slow the economy.
Ongoing economic pressures are also sending many younger Canadians back to living with their families.
“We are seeing younger consumers staying at home longer, maybe living with their parents … maybe with their grandparents,” Oakes said.
She added the average income for younger consumers tends to be lower, with many new to the job market or working part-time hours, as fewer find relevant jobs.
“All those things make it particularly tricky and harder for those individuals to be able to weather the storm,” Oakes said.
Overall, the non-mortgage delinquency rate
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