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

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

Pellet plants deal with a lot of combustible materials. (File photo)
“Fire-related event” at Houston pellet plant injures three, shuts down operations

Rumours of an associated explosion cannot be confirmed at this time

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
41 positive COVID-19 cases associated with the LNG Canada site outbreak

Thirty-four of the 41 cases remain active, according to Northern Health

Snowplowing isn’t really our favourite pastime but it is something we have been doing a lot of lately. Winter is here folks get your shovels out! (Angelique Houlihan photo/Houston Today)
Canadian’s favourite pastime

Snowplowing isn’t really our favourite pastime but it is something we have… Continue reading

grad
Raising money

Recently 2021 grad and parents sorted through all the bottles they have… Continue reading

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest weekend of COVID-19 pandemic with 46 deaths; more than 2,300 cases

Provincial health officer Dr. Bonnie Henry provides COVID-19 update

Fossil finds at Mt. Stephen. (Photo: Sarah Fuller/Parks Canada)
Extreme hiking, time travel and science converge in the Burgess Shale

Climb high in the alpine and trace your family tree back millions of years – to our ocean ancestors

Kettle bells sit aligned in an indoor fitness studio. (PIxabay.com)
1 COVID-19 case at a B.C. fitness studio leads to 104 more infections, 6 school exposures

According to case data released by Fraser Health, one case of the novel coronavirus carries a big impact

Vehicles drive past a display thanking essential workers in Burnaby, B.C. on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Marissa Tiel
B.C. changing COVID-19 case reporting as virus spread continues

Manual counting takes more time, leads to errors

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Mask fundraiser helps make children’s wishes come true

From Black Press Media + BraveFace – adult, youth and kid masks support Make-A-Wish Foundation

Christy Jordan-Fenton is the co-author of the book Fatty Legs, which has been mentioned amid the controversy of an Abbotsford school assignment on residential schools.
Co-author of residential schools book condemns controversial Abbotsford class assignment

Children’s book mentioned amid controversy at W. A. Fraser Middle School

Kootenay East MLA Tom Shypitka takes over as energy and mines critic for the B.C. Liberal opposition. Kelowna-Lake Country MLA Norm Letnick (right) moves from health critic to assistant deputy speaker. (Hansard TV)
B.C. Liberals pick critics to take on Horgan’s NDP majority

Interim leader Shirley Bond takes seniors, long-term care

Deputy Prime Minister and Minister of Finance Chrystia Freeland listens to a question from a reporter on the phone during a news conference in Ottawa, Monday, Nov. 30, 2020. THE CANADIAN PRESS/Adrian Wyld
Spending too little worse than spending too much, Freeland says as Canada’s deficit tops $381B

‘The risk of providing too little support now outweighs that of providing too much’

Still from a video surveillance camera of a man alleged to have stolen from several people at knife-point in Chilliwack (Rosedale) early on Nov. 28, 2020. (Facebook)
B.C. man defends his family against intruder, saves neighbour while wielding hockey stick

RCMP looking for footage that captures violent crime spree in Chilliwack

Most Read