The growth of Canadian non-mortgage debt has dropped 30% over the past year; according to Canada’s National Credit Trends report from Equifax.
The report also points out that even while Canadians are continuing to reduce the balance owing on their credit cards, they are not increasing their overall debt levels through bank loans and lines of credit.
Total consumer non-mortgage indebtedness; or what we Financial
Planners call ‘bad debt’ only increased 3.1% over the past 12 months ending June
30th 2012, in comparison to 4.4% during the same time period last
year.
“Non-mortgage consumer indebtedness has increased at a very moderate rate, with most of the growth coming from people’s existing credit facilities, as opposed to opening new accounts,” says Nadim Abdo Equifax’s vice president, consulting and analytical services, “We are also seeing a continued decrease in serious consumer delinquency and bankruptcy.”
The credit product that showed the largest increase in
outstanding debt was auto financing, this number jumped 8%.
With debt being the major issue causing the 2008 Financial
crisis; and the more recent media obsession with the European debt problems; it
is not surprising consumer demand for new credit is now 6% lower than it was
four years ago.
Managing
debt is an important part of your overall Financial Plan; if you haven’t
already joined the trend, don’t be embarrassed or afraid to ask me how to
prioritize debt payments or strategize a debt payment schedule. Like I always say, you increase your wealth
two ways, saving and investing; or paying down your debt.
Have a
great weekend,
Source Advisor.ca
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