Consumer debt and delinquency rates rise in 3rd quarter: Equifax

WATCH ABOVE: Consumer insolvency is still on the rise according to Statistics Canada, from July 2015 to July 2016, there was a 10.6 per cent increase in consumer filings with bankruptcies.

TORONTO – A new Equifax Canada report says low interest rates and falling oil prices drove up consumer debt and delinquency rates in the third quarter.

The credit reporting agency found that average debt increased by 3.6 per cent to $22,081 in the quarter ended Sept. 30 compared to the same period last year.

READ MORE: Canadians’ debt continues to grow, now at $1.94 trillion: report

As of the third quarter, Canadian consumers owed $1.702 trillion compared to $1.587 trillion a year earlier.

Equifax says the percentage of people who are 90 days or more behind paying their debt grew to 1.14 per cent from 1.05 per cent during the same year-over-year period.

READ MORE: More people skipping out on credit card bills in oil-producing regions

It says the increase in delinquency was largely driven by oil-producing provinces in Western Canada and Newfoundland and Labrador, where default rates tend to be higher.

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Total consumer debt, excluding mortgages, remains on the rise fuelled in part by low interest rates, it said.