Growth in Canadian non-mortgage debt in the 12 months ending June 2012 was 30% lower than a year earlier, according to Equifax Canada’s National Credit Trends report.
The report stated credit card balances continued to decrease, while other credit products such as bank loans and lines of credit showed moderate growth compared with the same period last year.
Total consumer non-mortgage debt in Q2 2012 increased 3.1% in the last 12 months, compared with a growth of 4.4% in the same period last year.
Nadim Abdo, vice-president of consulting and analytical services at Equifax Canada, said, “It is very encouraging to see non-mortgage consumer indebtedness increase at a very moderate rate with most of the growth coming from people’s existing credit facilities, as opposed to opening new accounts.
“We are also seeing a continued decrease in serious consumer delinquency and bankruptcy.”
The credit product that showed the largest increase in outstanding balances was non-bank auto finance loans and leases, which grew 8% over the same period last year.
“According to our Credit Seeking Index, which measures the velocity at which consumers are seeking new credit facilities, consumer demand for new credit is now 6% lower than it was prior to the recent financial crisis in 2008, with most of the growth being attributed to non-bank auto finance loans and leases,” said Abdo.
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