Taking on more credit card debt has not been the pandemic plan for many Canadians, data from TransUnion Canada suggested on Tuesday. Credit cards are displayed in Montreal, Wednesday, December 12, 2012. THE CANADIAN PRESS/Ryan Remiorz

Canadians taking steps to avoid credit card debt, despite economic pressure

People are opting to dip into savings or retirement funds rather than relying on credit cards

TransUnion Canada says data show Canadians have not taken on additional credit card debt during the COVID-19 pandemic.

The credit reporting agency says in a quarterly report that credit card balances fell 12.3 per cent in the second quarter compared with the same period a year ago.

TransUnion’s Matt Fabian says reduced opportunities for spending during the lockdown may have contributed to the drop, but he also noted that people are opting to dip into savings or retirement funds rather than relying on credit cards.

Applications for new credit also grew at a slower-than-usual pace, amid reduced access to branches during the lockdown, uncertainty around employment and a pullback on new offers from lenders.

But TransUnion says mortgage debt is on the rise, with new mortgages, renewals and refinances up 29 per cent from a year ago and a 5.3 per cent annual increase in the total volume of mortgage debt.

Despite a 4.3 per cent rise in total outstanding debt in Canada, which stood at $1.9 trillion in the second quarter, Fabian says delinquencies have risen less than expected, as about 2.6 million Canadians, or 9.2 per cent of credit consumers, have at least one active deferral.

TransUnion uses the credit bureaus’ national consumer credit database as source material for its quarterly report.

The Canadian Press

CoronavirusDebtFinance

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Citing stability, B.C. Premier calls snap election for Oct. 24

John Horgan meets with Lieutenant Governor to request vote

Wanted man with violent past might be in Okanagan

RCMP asking for public’s help in locating Roy Andrew

Morning Start: Polar bears don’t have white skin or fur

Your morning start for Tuesday, Sept. 22, 2020

Vernon man brews up award-winning flavours in Golden

Kenton (Kent) Donaldson is co-founder of Whitetooth Brewing Company Ltd. in Golden

Kelowna filmmaker launches fundraiser for ‘Texas Chainsaw Massacre’ fan movie

Donations will go towards the production of ‘The Sawyer Massacre’

COVID-19: 4 more deaths, 366 new cases in B.C. since Friday

A total of 8,208 people in B.C. have tested positive for COVID-19 since January

Vancouver Island sailor stranded in U.S. hospital after suffering massive stroke at sea

Oak Bay man was attempting to circumnavigate the world solo

Majority needed to pass COVID-19 budget, B.C. premier says

John Horgan pushes urgent care centres in first campaign stop

COVID-19 makes its mark on Shuswap schools, teachers and parents

Pandemic keeps more students than expected away from conventional schooling

Public health officials urge Canadians to limit contacts again as COVID-19 cases rise

Canada has committed $1 billion to buy at least 154 million doses of vaccines from five different companies

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Vancouver Island family overwhelmed with 14 Lab puppies

Litter may be one of the biggest ever

POLL: do you support the snap election?

British Columbians will head to the polls on October 24th for a mid-pandemic snap election

B.C. could be without a new leader for multiple weeks after Election Day: officials

More than 20K mail-in voting packages were requested within a day of B.C. election being called

Most Read