Industry Insights Report indicates Edmontonians have more debt than other Canadians

According to a report on Canadian credit trends, things are looking up for Canada’s economic growth -but Alberta is still lagging.

TransUnion Canada’s latest Canada Industry Insights Report analyzes Canadian credit trends. The results for the first quarter of 2017 suggests healthy growth of the economy, and consumer spending.

“Canada’s credit performance generally remained strong outside of oil-rich provinces,” Mark Fabian, director of research and consulting said. “We’ve found there’s an interesting dynamic occurring with Canadian credit performance.”

“The average consumer debt balance is about $22,000, which is almost two per cent higher than this time last year. However, people are paying off their debt at a better rate than last year. The overall delinquency rate on a national level is down by almost one and a half percent.”

Tweet This Click to share quote on Twitter: "The average consumer debt balance is about $22,000, which is almost two per cent higher than this time last year. However, people are paying off their debt at a better rate than last year. The overall delinquency rate on a national level is down by almost one and a half percent."

Provinces with economies based on oil are still seeing the effects of the price drop from a few years back. Edmonton consumers have the highest rate of delinquency in paying off credit.

“There’s a bit of a lagging effect when you look at delinquency rates,” Fabian said. “Typically in areas that are affected regionally, we might see the oil prices drop and that subsequently leads to higher unemployment levels.

“Higher unemployment levels makes it harder for people to manage their debt and pay bills, so we see that represented in higher delinquency rates.”

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Fabian advised consumers to be diligent when it comes to their debt. He said it’s important for individuals to take action to understand their debt, credit rating, and be prepared for difficult economic situations. He also said that despite the reports, it’s not all bad news for Albertans.

“There’s a positive outlook on Edmonton, and Alberta and the oil-producing provinces as a whole. Most economists are projecting these areas to rebound,” he said. “We don’t see that yet in our delinquency numbers, but it’s usually a lag effect where the economy turns around and that’s followed by improved delinquency rates.”

Auto delinquency rates are also at a historic low. (KLM)