Not paying consumer debt on time, the financial equivalent of sweeping crumbs under the sofa, has long been an issue for Canadians.
Turns out it was never about not having the means to be punctual in our payments, we just couldn’t really be bothered.
According to credit monitoring agency TransUnion, the second quarter has 2.58 per cent delinquency rate on non-mortgage consumer debts, a considerable drop from a delinquency rate of 2.78 per cent in the second quarter of 2013 and 2.69 per cent in 2014. The delinquency rate is determined based on debt payments that are overdue by 90 days or more.
This is despite the fact that the average balance owing continues to rise at all-time highs, which currently hovers at a consumer debt $21,028.
Lines of credit, which typically have floating interest rates, account for 35 per cent of this debt. Recent interest rate cuts are credited with reducing debts by essentially making this money cheaper.
Good job, Canada. Stay on top of your money before it gets on top of you.