(Toronto) Canadians’ combined debt stock set a new record in the first quarter, reaching $2.32 trillion, TransUnion said Wednesday.
According to the credit rating agency, many Canadians have turned to credit to ease financial pressures at a time when the cost of living is rising with high inflation and rising interest rates.
TransUnion says the number of Canadians with access to credit increased by 2.9% year over year, due to the number of at-risk consumers, which increased by 8.3%.
Credit card issuance rose 20% amid strong market competition, while the average monthly line of credit payment rose 43% to $436.
Mortgage origination fell 32% year-over-year, according to TransUnion, as rising interest rates dampened demand for new mortgages, particularly in the refinance market.
Meanwhile, the rate of serious consumer delinquency has increased, although TransUnion noted that overall delinquency levels remain below pre-pandemic levels.