Canada shows the first consumer debt loads decline in almost 10 years

According to Equifax, during the first quarter of this year, Canada’s consumer debt loads showed a slight decline for the first time in more than 10 years.

At the end of March, the average Canadian reported $23,386 worth of consumer debt, marking a 0.49% annual decrease.

Equifax names the COVID-19 pandemic causing massive shutdowns as the main reason for such a drop.

“As stores and restaurants were closed, consumers were able to reduce their spending in March,” – noted Bill Johnson from Equifax.

“As a result, we’ve seen a decline in credit card spending that led to much lower balances. The tendency became stronger in April, showing some signs that consumers are considering debt as support in the early days of the pandemic.”

Although the overall picture points to slowing growth of debt loads, the situation varies depending on regions and demographic groups.

For instance, younger people and older people borrowed less, while middle-aged people showed higher balances. The average 18-25 year old Canadian reported $8,588 in consumer debt in the first quarter. It’s 1.03% less than a year ago.

Those aged 46-65 borrowed more, while seniors reported an average of $16,214, marking a 0.45% year-over-year drop.

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