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

Annual Thanksgiving Food Drive garnishes generous portions

Food donations will sustain the Prince Rupert Food Bank for three months.

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

Haida hereditary chief is BC Liberal Candidate for North Coast Region

Roy Jones Jr. is named BC Liberal MLA candidate for the North Coast

$3.4 million childcare centre to be built in Lax Kw’alaams

Lax Kw’alaams funding has been approved through the provincial New Spaces Fund

COVID-19 cases grow to 13 at B.C. First Nation near Fort St. James

“This is very serious,” says Nak’azdli Whut’en Chief

QUIZ: Do you know what’s on TV?

Fall is normally the time when new television shows are released

End of CERB means uncertainty for some, new system for others

As of a week ago, the CERB had paid out $79.3 billion to 8.8 million people

Horgan, Wilkinson trade barbs over MSP premiums, health care at campaign stops

Horgan called a snap election for Oct. 24 earlier this week

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

$250K reward offered as investigation continues into Sea to Sky Gondola vandalism

Police also asking for specific footage of Sea to Sky highway around time of incident

Most Read