Equifax Canada Reports: Delinquency Rate Up for Millennials, Seniors Adding More Debt
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Up)TORONTO, ONTARIO -- (Marketwired) -- 08/18/16 -- (NYSE: EFX) - The delinquency rate among young millennials (18-25 years) hit 1.8 per cent in the second quarter of this year, an increase of 11.7 per cent from their 1.6 per cent rate in the second quarter of 2015. However young adults didn't add much debt over the past year with the average change at $167, while the debt obligations of seniors (65+ years) increased by $1,134 (8.2 per cent) to $15,001 according to Equifax Canada's Q2 2016 National Consumer Credit Trends Report.
Total consumer total debt (excluding mortgages) also remains on the rise. As of Q2 2016, Canadian consumers owe $1.666 Trillion, compared to $1.618 Trillion in Q1 2016 and $1.568 Trillion a year earlier, an increase of 3 per cent and 6.3 per cent, respectively.
"While debt among seniors has increased, they are also the only age group that saw its delinquency rate decrease over the past 12 months. They currently share the lowest delinquency rate, 0.9 per cent, with the 55-64 age group," said Regina Malina, Senior Director of Decision Insights at Equifax Canada. "For the most part, older Canadians have always demonstrated an ability to handle their spending and what they owe. Young people, and really everyone, should be reminded to practice good budget and money management habits. Great tips can be found on the Financial Consumer Agency of Canada's website".
Debt (excluding mortgages) & Delinquency Rates
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Average Debt Change Delinquency Rate Change
Average Year-over-Year Delinquency Year-over-Year
Age Debt (Q2 2016 vs. Q2 2015) Rate (Q2 2016 vs. Q2 2015)
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18-25 $8,203 2.1% 1.8% 11.7%
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26-35 $16,841 2.8% 1.6% 9.7%
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36-45 $26,480 1.8% 1.3% 5.5%
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46-55 $32,243 3.4% 1.0% 1.0%
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56-65 $27,594 3.3% 0.9% 2.2%
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65+ $15,001 8.2% 0.9% -2.4%
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Canada $21,878 3.4% 1.1% 4.1%
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On a debt classification basis, installment loan, auto loan and mortgage sectors are showing significant increases of 7.8 per cent, 7.6 per cent and 7.6 per cent year-over-year, respectively.
"Regional differences in debt and delinquencies are playing out as anyone would expect given the price of oil," added Malina. "Both lenders and borrowers are having to adjust to current conditions in their local economies."
Major City Analysis - Debt (excluding mortgages) & Delinquency Rates
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Average Debt Change Delinquency Rate Change
Average Year-over-Year Delinquency Year-over-Year
City Debt (Q2 2016 vs. Q2 2015) Rate (Q2 2016 vs. Q2 2015)
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Calgary $28,572 1.2% 1.1% 32.2%
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Edmonton $26,691 1.7% 1.4% 39.0%
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Halifax $23,374 3.3% 1.5% 6.2%
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Montreal $17,091 4.0% 1.3% -2.9%
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Ottawa $21,322 2.8% 1.0% -0.4%
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Toronto $20,460 3.9% 1.3% -2.7%
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Vancouver $24,267 3.5% 0.8% -9.1%
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St. John's $24,721 3.0% 1.2% 21.2%
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Province Analysis - Debt (excluding mortgages) & Delinquency Rates
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Delinquency Rate
Average Debt Change Change Year-over-
Year-over-Year Year
Average (Q2 2016 vs. Q2 Delinquency (Q2 2016 vs. Q2
Province Debt 2015) Rate 2015)
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Ontario $21,570 3.7% 1.1% -3.9%
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Quebec $18,489 4.1% 1.1% -3.3%
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Nova Scotia $21,963 4.3% 1.7% 2.0%
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New Brunswick $22,542 5.1% 1.7% -1.6%
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PEI $21,822 4.6% 1.5% 5.4%
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Newfoundland $23,074 4.6% 1.3% 19.4%
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Eastern Region $22,382 4.6% 1.6% 3.8%
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Alberta $27,753 1.6% 1.4% 40.3%
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Manitoba $18,193 3.5% 1.2% 12.9%
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Saskatchewan $24,276 4.0% 1.2% 22.7%
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British Columbia $23,538 2.3% 1.0% -3.3%
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Western Region $24,586 2.3% 1.2% 18.1%
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Canada $21,878 3.4% 1.1% 4.1%
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Data for this report, including scores, are sourced from Equifax Canada, the repository of the majority of credit transactions that occur in Canada. There are over 25 million unique Equifax consumer credit files. Transaction volumes for data are estimated at 105 million per month. Information provided in this report was adjusted to ensure that quarterly data reflects the results as of the last month of each quarter.
About Equifax
Equifax powers the financial future of individuals and organizations around the world. Using the combined strength of unique trusted data, technology and innovative analytics, Equifax has grown from a consumer credit company into a leading provider of insights and knowledge that helps its customers make informed decisions. The company organizes, assimilates and analyzes data on more than 820 million consumers and more than 91 million businesses worldwide, and its databases include employee data contributed from more than 5,000 employers.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500� Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,200 employees worldwide.
Some noteworthy achievements for the company include: Ranked 13 on the American Banker FinTech Forward list (2015); named a Top Technology Provider on the FinTech 100 list (2004-2015); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2015); named one of Fortune's World's Most Admired Companies (2011-2015); named one of Forbes' World's 100 Most Innovative Companies (2015). For more information, visit www.equifax.com
Contacts: Andrew Findlater SELECT Public Relations [email protected] (416) 659-1197 Tom Carroll Media Relations Equifax Canada [email protected] (416) 227-5290
Source: Equifax Canada
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