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More Canadian businesses are missing debt payments, Equifax says

As the Bank of Canada announced this week it was pushing pause on interest rate hikes, a new snapshot of Canadians' debt by Equifax showed credit card debt soared by 15 per cent, totalling more than $100 billion for the first time ever. In addition, total debt climbed six per cent to more than $2.37 trillion. Global's Anne Gaviola is joined by The Peak Daily podcast's Brett Chang to discuss how Equifax says higher interest rates are yet to be felt fully by homeowners and whether people should be alarmed – Mar 10, 2023

A new report says more Canadian businesses are missing debt payments.

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The report by Equifax Canada says overall delinquencies for businesses in the third quarter rose 3.4 per cent compared with the previous quarter, signalling potential challenges in debt repayment.

The report also says credit demand among businesses showed a seasonal drop of 1.9 per cent from last quarter, but was up 13.2 per cent year over year.

Equifax Canada says the data shows that more existing businesses are seeking credit as the end of the year approaches, which could be a sign of early financial stress.

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Jeff Brown, head of commercial solutions at Equifax Canada, says the data suggests a shift in behaviour among businesses, with increased reliance on existing credit lines and cards.

Brown says that while this may reflect a cautious approach in response to rising interest rates, it also raises concerns about potential debt burdens.

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